Maize firms up marginally to Rs 13,438/ton: USGC

Maize prices up by 0.7% , higher than last year by 9.6%

Even as the sowing area for maize has increased, its prices have marginally firmed up during the last week to a pan-India average of Rs 13,438 per tonne from the previous week, mainly due to reports of crop damage in some parts of the country, according to US Grains Council.

"Maize prices were up by 0.7% to Rs 13,438 per tonne, higher than last year by 9.6%. Prices have been strong despite an increase in the sowing area and higher production is expected. However, there are reports of some damage from some parts of the country," USGC India Representative Amit Sachdev said.

It is still too early to speculate if the excess rains and flooding in some parts will affect the productivity at large, he added.

Prices increased in Gujarat by 1.59% to Rs 14,532 per tonne, Karnataka by 6.26% to Rs 13,655 per tonne, Rajasthan by 0.72% and Uttar Pradesh by 5.62%.

However, prices declined in Andhra Pradesh by 4.09% to Rs 12,526 per tonne, Maharashtra by 1% to Rs 14,508 per tonne and Tamil Nadu by 5.65% to Rs 14,864 per tonne.

On the future markets all maize contracts closed higher than last week.

In the spot prices were firm, including Davangere, by 1.84% at Rs 15,175 per tonne, Karimnagar by 0.42% at Rs 14,850 per tonne and Sangli by 3.90% at Rs 16,555 per tonne.

Prices in other markets were down, Nizamabad down 0.14% at Rs 14,913 per tonne and Gulabbagh by 1.62% at Rs 13,650 per tonne.

"There have been reports about some bad quality maize from Bihar, which has led to little increase in demand of pearl millet triggering some increase in price," Sachdev said.

Globally, there is going to be ample amount of corn in the market and this could keep the prices down, Sachdev said, adding that it would depend on several factors, including Chinese buying.