Maize prices firm, but still below MSP

The weak arrival of maize in the markets during the festive season pushed prices of the commodity by at least 6 per cent, though it remained lower than the government price.

“Average price for October 2008 was at Rs 8,228 a tonne, higher by 25.6 per cent against the corresponding month last year,” US Grains Council Representative Amit Sachdev said. But it is still lower than the minimum support price (MSP) of Rs 8,400 a tonne for maize.

Maize prices last week moved up by 6.5 per cent to Rs 8,585 a tonne at mandis compared with Rs 8,000-8,100 a tonne for the week ended October 25, he said.

The prices of maize are higher by 32-34 per cent than in the corresponding period last year that was at Rs 6,400-6,500 a tonne, Sachdev said.

In the futures market also, November contract for maize was up by about Rs 200 a tonne over last week at Rs 8,600 levels, while the December contract was up by Rs 100 to reach Rs 8,360 a tonne, he said.

In the spot markets, maize was up by about Rs 100 a tonne in Nizamabad last week at Rs 9,100 and lost Rs 100 a tonne to level at Rs 9,460 a tonne at Davangere. In Karimnagar the prices remained stable at Rs 9,040 a tonne.

Jowar prices were up this week at Rs 10,102 a tonne, about 5.6 per cent higher than last year. Jowar price in October 2008 was Rs 9,559 a tonne, about 3.7 per cent higher than same month last year.

Meanwhile, barley prices remained stable. Delivered prices to the malt companies in Haryana are seen at Rs 11,500 tonnes, Sachdev pointed out.

In the futures market both November and December contracts for barley were reported at Rs 10,900 a tonne and in the spot market at Jaipur the price was quoted at Rs 10,800 a tonne.

Bajra prices were about 20 per cent higher than last year at Rs 7,670 a tonne. The average price for October 2008 was Rs 7,502 a tonne, about 17.5 per cent higher than same month last year. Market price of bajra is also lower than its MSP of Rs 8,400 a tonne.

By 2020, the requirement of maize by the end-users like poultry, starch, livestock feed, food and brewery will be about 30.73 million tonnes, he added.