Maize prices expected to remain strong despite spectacular production
The maize market in India is expected to maintain strong prices despite a projected 10.3% increase in production for the 2024 Kharif season. The sowing area has expanded by 3.4 lakh hectares, reaching 88.05 lakh hectares, resulting in an expected production of 245.41 lakh tonnes. Consistent domestic demand, particularly for poultry feed, starch, and ethanol production, along with a 6.5% rise in the Minimum Support Price (MSP) to Rs 2,225 per quintal, will help stabilize prices. The government’s agreements with ethanol distilleries to purchase maize at MSP further support market resilience.
iGrain India – The maize market in India is expected to maintain strong prices despite a substantial increase in production for the Kharif season of 2024.
Official data reveals a notable expansion in the sowing area, reaching 88.05 lakh hectares, up by 3.4 lakh hectares compared to last year.
This increase is expected to lead to a 10.3% rise in maize production, reaching 245.41 lakh tonnes, up from 222.45 lakh tonnes in 2023.
Despite the expected surge in supply, experts predict maize prices will remain resilient. This is due in part to consistent domestic demand, including for use in poultry and animal feed, starch manufacturing, and increasing consumption in the rapidly expanding ethanol production sector.
The Indian government has also raised the Minimum Support Price (MSP) for maize by 6.5% to Rs 2,225 per quintal to support farmers and ensure fair compensation.
Rahul Chauhan, a prominent commodity analyst, notes that while maize demand for traditional industries like feed and starch will remain strong, its use in ethanol production is expected to rise significantly.
The government has also signed agreements with ethanol distilleries to purchase maize at MSP, which provides an additional cushion against potential price declines.
Consequently, even with the expected production increase, strong demand across sectors and government support will likely keep maize prices from falling sharply.
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Source Link : Investing.com
