The maize market is ablaze with soaring prices, driven by snail-paced progress in kharif sowing and inadequate rains in major producing regions like Karnataka and Maharashtra. In the bustling market of Davangere, known as the corn capital of the South, prices have shot up by 15-20 percent, hitting around $0,25 per kg. Other regions, including Erode, Sangli, Gulabbagh, and Chhindwara, are just a little behind, following an upward trajectory.
The current minimum support price for maize, a modest $0,25, may not be enough to dampen the fiery enthusiasm in the market. Market experts predict a firmness in prices as sowing remains at a crawl, with the new kharif crop expected to enter in September-October, and until then, the prices are expected to stay strong. The recent data paints a picture of concern, with maize planting covering approximately 4.515 million hectares, showing a 4 percent dip compared to the previous year. States like Karnataka, Maharashtra, Odisha, and Telangana bear the brunt of the rain deficit, leading to deficit sowing.
As the pivotal consumer of maize, the poultry sector is about to feel the heat with mounting cost pressures. The rising maize prices and a seasonal slump in consumption during the holy month of Shravan pose a challenging situation. Thus, this flow may continue. Furthermore, while the market scorches, there is a silver lining in the form of rising maize production in recent years. According to the third advance estimate, the projected maize production for this year is a record-breaking 35.91 million tonnes against 33.73 million tonnes in 2021-22. That’s a rise of 2.18 million tonnes. Therefore, the maize market’s heat may persist, according to market whisperers.
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