Rabi Harvest Begins, Maize Prices Under Pressure: What Farmers & Consumers Need to Know
Rabi maize prices are under strain at the start of the harvest season in major producer Bihar, owing to a greater yield and weak demand from the main consuming sector of poultry. According to trade insiders, prices have already begun to fall in Gulabbagh, Bihar’s primary market at the start of the harvest season.
“Maize prices have dropped by about 15% in the last week and are now hovering around Rs 2,010 per quintal. As the harvest progresses and arrivals pick up over the next few weeks, we expect prices to fall below the minimum support price (MSP) level of 1,962,” said Tarun Satsangi, AGM and head of Commodity Research at Origo eMandi. Maize prices in other Telangana markets are hovering around MSP levels.
According to Satsangi, demand for maize from the domestic poultry business is low because offtake has yet to recover. At the same time, shipments have been slow due to increased global supplies and weak demand from China due to the current flu scenario. Indian maize prices are $291 per tonne FOB, whereas Argentina is $301 and Brazil is $288. “With Indian maize at parity, we can expect a pick-up in export demand in the coming days,” he said.
According to Origo, the rabi maize crop for 2022-23 will be 10.59 million tonnes (mt), up from 8.8 mt the previous year. This is primarily due to increased production in Bihar, West Bengal, Tamil Nadu, Maharashtra, and Karnataka.
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