Maize Prices Continue To Slide

Coimbatore: With arrivals on the rise, the maize prices across markets came down further this week by Rs 200-250 a tonne or 3.4 per cent over the previous week’s price levels of Rs 6,700- 6,750.

The average price this week hit the Rs 6,400-6,500 a tonne, with the lowest price reported in Karnataka, according to the US Grains Council India reports on the country’s maize price status.

The report has also said that the softening price trend seen in recent days has set off speculation over the Indian government agencies’ readiness to get into the minimum support price (MSP) operation to rescue the maize farmers.

This year, the government had set the MSP for maize at Rs 6,200 per tonne, though the prevailing maize price is considered higher by some 7 per cent compared with the previous year’s price at this point of time.

The report also said that this year farmers in Gujarat, Maharashtra and some parts of Karnataka had raised a sizeable quantities of white maize as well that will go for human consumption. Trade speculates about higher maize export from India due to increased production this year.

But the rising rupee would not support a sustained Indian maize exports, the report suggested.

As for other coarse grains, the price of Bajra on account of large arrivals in market place went down sharply this week by 10.8 per cent to Rs 6,100 per quintal which is still lower by some five per cent compared to the maize price.

On the contrary, sorghum (jowar) price shot up by eight per cent over the previous week’s price to quote at Rs 9,400, despite this being the harvest time.

The US Grains Council India report quoting the USDA said the new estimate for US corn crop of 2007-08 has been projected at 338.27 million tonnes, higher by 26 per cent than the 2006-07 crop of 267.57 mt.

The higher maize supplies and lower end-use will leave US reporting a higher closing stock in the coming season estimated at 50.72 mt.