Unlikely to See a Sharp Surge in Maize Prices

New Delhi. Although the ban on using sugarcane-based ingredients for ethanol production was expected to boost the demand, consumption, and prices of maize, the government’s decision to reduce the procurement price of ethanol produced from maize by ₹3 per litre is likely to dampen the interest of distillers in purchasing this key coarse grain at higher prices.

Domestic maize production is expected to decline; in major producing states like Maharashtra and Karnataka, the area under cultivation has shrunk, and average crop yields are also likely to fall due to deficient rainfall and drought conditions.

The arrival of the new Kharif maize crop has begun and is set to gain momentum next month. Meanwhile, the sowing season for the Rabi maize crop has also commenced. Demand for maize in the poultry feed, livestock feed, and starch manufacturing sectors is expected to remain steady, which may keep prices firm.