High demand from states pushed up maize prices: USGC

Maize prices in India increased by 0.4 per cent last week to Rs 9,359 per tonne compared to the previous week due to higher demand from consuming states, a US Grains Council report said today.

"Prices are higher than last year by 7.2 per cent," USGC India representative Amit Sachdeva said.

Maize prices, for the week ending June 11, climbed 0.98 per cent to Rs 8,745 per tonne in Andhra Pradesh, 3.64 per cent to Rs 10,508 per tonne in Gujarat, 0.74 per cent to Rs 8,992 per tonne in Karnataka maize price and 2.31 per cent to Rs 9, 120 per tonne in Maharashtra.

In Rajasthan, the price rise was by 1.41 per cent to Rs 10,244 per tonne. Maize price in Tamil Nadu was stable at Rs 9,657 per tonne but in Uttar Pradesh it fell by 5.81 per cent to Rs 9,920 per tonne, the report said.

On the National Commodities and Derivatives Exchange (NCDEX) also, maize futures prices registered an increase last week, it added.

The June futures contract was up by 0.4 per cent to Rs 10,055 per tonne while July contract rose 1.28 per cent to Rs 10,245 per tonne. August maize futures climbed 1.37 per cent to Rs 10,320 per tonne and the one for September also inched up 0.34 per cent to Rs 10,100 per tonne.

Maize rates also registered an increase in the spot markets. In Nizamabad rates were up 2.15 per cent to Rs 9,972 per tonne, in Karimnagar they rose 1.80 per cent to Rs 9,850 per tonne, while in Davangere prices were stable at Rs 9,620 per tonne, the USGC report said.

The rise in the spot market prices follows the government's decision last week to increase the Minimum Support Price for all kharif crops, including maize, for the year 2010-11. The MSP for maize is now at Rs 8,800 per tonne, up 4.76 per cent compared to 2009-10.

Among other coarse cereals, pearl millet prices remained stable at Rs 9,455 per tonne, sorghum prices rose by 0.8 per cent to Rs 13,120 per tonne, while barley prices moved up by 3.8 per cent to Rs 9,636 per tonne for the week ended June 11, the report added.