Maize prices up by 2.5% last week

Maize prices rose by 2.5% to an average rate of Rs 9,502 per tonne last week as compared to the previous week on higher domestic and exports demand, a US Grains Council (USGC) report said today.

The Council pointed out that maize prices increased last week despite estimates of sharp rise in production in 2010-11 at 20.03 million tonnes from 16.72 million tonnes in the previous year. The government had released the second advance estimates for 2010-11 last week.

"The prices though do not reflect the higher production, possibly have taken note of the higher demand and exports of maize from India," USGC India representative Amit Sachdev said in a statement.

"The other possibility for maize prices being higher in India is the high prices in US," he added.

The Council, however, noted that the maize prices last week were lower by 3.6% compared to the year-ago period.

During last week, maize prices rose by four% in Tamil Nadu to Rs 9,704 per tonne, while it went up by three% in Maharashtra to Rs 9,628 per tonnes. The prices rose marginally in Andhra Pradesh, Gujarat and Rajasthan.

However, the prices of maize fell by 1.63% at Rs 9,079 per tonnes in Karnataka and by 0.52% to Rs 9,720 in Uttar Pradesh, the report added.

On the National Commodities and Derivatives Exchange (NCDEX) platform, too, prices of maize were up.

The February futures were up by 0.86% to Rs 11,075 per tonne while the March futures were up by 1.15% to Rs 11,430 per tonne. Similarly, April futures for maize went up by 1.47% to Rs 11,660 per tonne and May futures inched up by 0.81% to Rs 11,810 per tonne.

In the spot markets also maize prices were high. Prices in Nizamabad were up by 1.38% to Rs 10,571 per tonne, in Davangere by 1.86% at Rs 10,400 per tonne and in Karimnagar by two% at Rs 10,512 per tonne.