Maize prices have witnessed a 20 percent increase since October due to reduced supply and heightened demand from traditional sectors such as livestock feed manufacturers, starch producers, and ethanol production, reported The Hindu Businessline.
In the key Southern market of Davangere, the modal price (the predominant rate in transactions) of maize was below the minimum support price (MSP) in early October, around ₹1,850 per quintal. However, it has risen to approximately ₹2,309 as of Wednesday. As per news report, market sources indicate that maize prices have seen an upward trend in other markets nationwide and are expected to remain strong in the future. The MSP for maize in the 2023-24 crop season stands at ₹2,090 per quintal.
Naveen Pasuparthy, Chairman of the Karnataka Poultry Farmers and Breeders Association (KPFBA), highlighted the impact of the maize price surge on the livestock feed sector. With kharif harvest completion and arrivals reduced by 25-27 percent due to erratic monsoons affecting the crop, prices have surged. Factory-delivered prices of maize now range between ₹24,000-25,000 per tonne compared to ₹21,000-22,000 a few months ago.
Pasuparthy, also Vice-Chairman of the Compound Livestock Feed Manufacturers Association (CLFMA) of India, mentioned that traders are holding stocks anticipating further price increases, especially with the government allowing maize for ethanol production. He urged the government to permit imports to address short-term demand.
