Indore : Maize prices cool down as new harvest hits market
Maize prices in Indore have moderated following the new season’s harvest, offering relief to industries reliant on maize, like adhesives, packaging, and confectionery. Prices dropped from over Rs 4,000 per quintal to Rs 2,300, but prior price surges due to ethanol demand caused significant volatility, prompting industries to seek alternatives like tapioca starch. Despite lower prices, reduced demand in sectors like textiles and ice cream remains a concern.
Indore: Fresh harvest from the new season has moderated maize prices from their unprecedented peak, providing relief to industries utilising maize as raw materials. However, substantial price volatility has compelled industries to seek alternatives.Maize prices surged to unprecedented levels this season due to heightened industrial demand for ethanol production, affecting adhesive, packaging, confectionery, and other allied industries utilising maize as raw materials. The fresh season supplies from October have subdued maize prices in the spot markets.Maize prices descended to Rs 2,300 per quintal compared to over Rs 4,000 per quintal until last September-October, according to traders and farmers. “We are exploring new options and alternatives for maize as such significant price fluctuations adversely affect trade. We have augmented the usage of tapioca starch in our operations, though it is costlier but requires a lesser quantity compared to maize,” said Jumbish Ajmera, owner of a paper adhesive manufacturer for the packaging industry in Sanwer Road Industrial area.The reduction in maize prices has enhanced margins for industries, but its peak prices during the high-demand season eliminated all profit margins, said industry representatives. Maize is utilised in confectionery, textile, food, fireworks, and pharmaceutical industries, among numerous others.
Tarun Vyas, a manufacturer of industrial starch and agro-based gums for the confectionery, textile, and food industry, said, “Elevated raw material prices disrupt all calculations, but there is no economical substitute for maize. Other alternatives are costly, and this makes the industry dependent on maize prices. Prices have declined now, but simultaneously demand from consuming sectors like ice creams, textiles, and others has diminished.”Industry anticipates maize prices to remain stable in the forthcoming weeks amid increased supplies from markets in Bihar and Madhya Pradesh. The soaring prices of maize during the recent season encouraged farmers to expand the area under cultivation in the Indore division.
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Source : Times Of India
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