Surpassing Previous Records and Boosting Local Economy
In an extraordinary agricultural feat, Guna’s Agricultural Produce Market in Madhya Pradesh has witnessed a maize harvest that has shattered all previous records. Amidst robust arrivals, maize prices have defied expectations by showing a remarkable upward trend, a boon for the region’s farmers, traders, and market authorities. This upswing followed closely on the heels of the government’s strategic move to reduce the mandi tax by 0.50% in October.
A Substantial Increase in Revenue Despite Tax Reduction
In the 70-day period from October 1 to November 10, the market amassed an impressive revenue of approximately $48,000 in mandi tax. This achievement is noteworthy, especially considering the tax rate was reduced from 1.50% to 1%. The month of October alone saw a tax collection of around $29,328, marking a substantial 38% increase compared to the same period in 2022. The initial ten days of November contributed an additional $16,800 (Rs 1.40 crore) in tax revenue.
Unprecedented Arrival Dominates the Market
Delving into the details of the last ten days, the market received an influx of 410 kg of various crops, with maize accounting for a staggering 330 kg. The combined tally for October and November reached 14 lakh quintals, with maize comprising an overwhelming 65% (9 lakh quintals). This level of maize arrival, which has overshadowed the soybean crop, is unprecedented for the Kharif season and marks a significant milestone.
Price Trends Defy Common Expectations
In a twist to conventional market dynamics, maize prices have remained buoyant despite the extraordinary harvest. Current prices are exceeding the government’s minimum support price (MSP) by $1,80 or €1.64. In 2022, maize was priced at around $0,23 per kg, whereas, in 2023, it has surged to between $0,24 and $0,25 or €0,22-€0,23 per kg. This price elevation is ensuring a lucrative return for the region’s farmers.
Market Secretary’s Insights
Udaybhanu Chaturvedi, the Market Secretary, highlighted that despite a decrease in tax rates, the market’s income has experienced a significant uptick. The current season’s profitability has outstripped last year’s, largely due to the exceptional maize yield. With such a bountiful harvest, traders are actively seeking additional storage solutions, leading to a rise in warehouse rentals in Guna. This strategic stockpiling is propelled by the heightened demand for maize in the poultry sector and its burgeoning use in ethanol production. Consequently, despite the abundant supply in the mandis, maize prices are steadfastly maintaining a position above the MSP, illustrating the crop’s strong market value and demand.”
Concluding Opinion
In a remarkable display of agricultural resilience, Guna’s maize harvest not only breaks records but also defies market norms, highlighting the crop’s enduring value in an evolving market landscape.
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