Maize prices trend below MSP as arrivals pick up amidst easing demand from ethanol, poultry sector
Maize prices have fallen below the MSP of ₹2,400/quintal as arrivals rise and demand eases from ethanol and poultry feed sectors. Despite rain damage, production is expected to hit a record due to higher acreage. Telangana has begun MSP procurement, while farmers elsewhere seek central support to prevent further price decline.
Maize prices have been trending below the minimum support price (MSP) levels across the country as arrivals pick up amidst expectations of a record crop and easing demand from sectors such as ethanol producers and poultry feed makers.
Modal prices (the price at which majority trade takes place in mandis) across mandis in various States have been ranging between ₹1,300-2100 a quintal across, ruling below the MSP of ₹2,400 for the kharif 2025 season. As prices trend below MSP, a section of the farmers have been demanding that the government procure at MSP. Telangana has started procurement at MSP and plans to procure about 8 lakh tonne of the cereal.
Anticipating better realisations, farmers have expanded the maize acreages this kharif season by about one million hectares to about 9.49 million hectares, up from previous year’s 8.43 million hectares. Despite excess rains impacting the crop in some areas, the production of maize for the kharif 2025 season is likely to be a record crop on rise in acreages.
Demand for maize from the ethanol producers has eased as they have other feed stocks like rice and sugarcane, said Rahul Chauhan, IGrain India. Moreover, the government has allocated 5.2 million tonne of rice to ethanol producers for 2025-26. The increase in availability of DDGS (Distillers’ Dried Grains with Solubles), a by-product of grain-based ethanol production process, for the poultry players is also seen impacting the demand for maize from the livestock feed sector, Chauhan added.
Despite the excess and unseasonal rains impacting the kharif crops in several States, the maize crop size is expected to be bigger than last year on increase in area, Chauhan added.
“The prices have come down as the harvest is very very good this time. Though the untimely rains have hit the crop, the overall kharif 2025 has been a good year for cereal production. Feed makers have been actively buying at current levels,” said Naveen Pasuparthy, deputy chairman of Compound Livestock Feed Manufacturers Association (CLFMA) of India. He expects the prices to bounce back soon.
In one of Maharashtra’s key maize-producing regions, prices have dropped sharply compared to last year despite widespread crop losses. In October last year, maize prices were between ₹1,900 and ₹2,300 per quintal in Jalna district, and ₹2,350 to ₹2,450 per quintal at the Sangli APMC — two of the State’s major maize markets. However, on Monday, the model price at Jalna APMC was down to ₹1,450 per quintal, with the minimum at ₹950 and the maximum at ₹1,800.
“Despite crop damage, maize arrivals are high as more farmers have taken to maize cultivation. This trend will definitely affect prices further,” said Baba Sawant, a farmer from Sangli.
According to P. P. Pawar, an agro-industrialist, maize prices were higher last year due to strong ethanol demand. “This year, rice and sugarcane are being used more for ethanol production. The government should increase the ethanol price derived from maize so that farmers at least get the minimum support price (MSP) for their produce,” Pawar added.
With market prices ruling below the MSP, the Telangana government has decided to procure about 8 lakh tonne of maize out of the expected output of 11.50 lakh tonne at ₹2,400 a quintal. So far, Telangana procured 20,584 quintals at a cost of about ₹50 crore. The maize procurement, which is being handled at 123 centres across the State, is expected to be completed on December 15.
The recent Cyclone Montha had damaged the crop in both Andhra Pradesh and Telangana. The crop was submerged due to the floods caused by heavy rains. Telangana Agriculture Minister Tummala Nageswara Rao has appealed to the Union government to include maize under the Price Support Scheme to bail out the farmers from the crisis.
“The State government announced that it would procure maize worth ₹2,500 crore to help the farmers in a depressed market. There’s no support from the Union government for maize. We request you to consider extending support,” Rao said in a letter to Shivraj Singh Chouhan a few days ago.
According to the 3rd advance estimates for 2024-25, India’s maize output is estimated at 422.81 lakh tonne, compared to 376.65 lakh tonne in 2023-24.
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Source : The Hindu Business line
