Maize prices harden as kharif sowing makes slow progress
Maize prices have started hardening on slow progress in kharif sowing due to deficient rains in key-producing regions of Karnataka and Maharashtra. As a result, the poultry sector is set to face increased cost pressure amidst seasonal slowing consumption and price decline.
The modal price (the rate at which most trades take place) in Davangere, a key market for maize in the South, has increased by 15-20 per cent from around ₹1.800 levels per quintal to levels of around ₹2,100. Spot maize prices in Erode are hovering around ₹2,400, in Sangli at ₹2,480, in Gulabbagh at ₹2,050 and in Chhindwara at ₹2,150. The minimum support price for maize for 2023-23 announced by the Centre is ₹2,090.
The trade expects prices to remain firm on a sluggish pace in sowing and the new kharif crop is expected to hit the markets sometime in September-October.
Progress in sowing
For the week ended July 14, maize has been planted in about 45.15 lakh hectares (lh), down by 4 per cent against 47.06 lh in the year-ago period. The acreage is down by 20 per cent compared with the normal of 56.26 lh for the period.
As of July 14, deficit sowing has been witnessed in Karnataka, where the acreage stood at 6.85 lh (10.50 lh a year ago), Maharashtra at 3.34 lh (5.99 lh), Odisha 0.73 lh (1.22 lh) and Telangana 0.56 lh (1.06 lh). Karnataka has witnessed a cumulative rain deficit of 26 per cent, while Maharashtra has seen a shortfall of 17 per cent, so far, in the ongoing monsoon.
Interestingly, the area under maize has increased in Rajasthan at 9.04 lh (5.25 lh), Madhya Pradesh at 9.74 lh (5.25 lh), Uttar Pradesh at 4.75 lh (4.12 lh), Himachal Pradesh at 2.38 lh (2.3 lj), Gujarat at 1.42 lh (1.20 lh) and Bihar at 1.66 lh (0.72 lh).
The poultry sector, the key consumer of maize, is seen facing cost pressure with the increase in maize prices and seasonal fall in consumption amidst dip in farm gate chicken prices. “Maize prices have moved up by over 20 per cent in the recent months, which will add up to the costs of the poultry farmers,” said Sushant Rai, President, Karnataka Poultry Farmer Breeders Association.
Two months slow down
Farmgate prices of poultry birds, which had touched a high of ₹130-140 per kg, have now dropped to the level of ₹90 per kg, Rai said. Consumption slows down during the holy month of Shravan. He said this year due to Adhik Shravan, the consumption will be slow for two months.
As maize is a 120-day crop, the harvest of the new crop will be in October. Until then, prices are likely to stay firm, Rai said.
Maize is planted in over 76 lh across the country and the production has been rising in recent years. As per the third advance estimates released in May this year, maize production is projected to be a record 35.91 million tonnes against 33.73 million tonnes in 2021-22.
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