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In southern states, maize-sowing has been affected as most of the area under the crop is rain-fed. It is likely maize acreage will see a fall this year.
Besides the delay in monsoon, low prices in the market have also discouraged farmers from increasing the area under maize. In June 2013, maize prices stood at Rs 1,500-1,650 a quintal; now, prices have fallen to Rs 1,300-1,350 a quintal. Also, it is expected demand for Indian maize in international markets won’t be high. While Indian maize was priced at $235-240 a tonne (free on board) at Indian ports, maize from South America was priced at $260-265 a tonne, delivered to destination, said Raju Choksi, vice-president (agri commodities), Anil Nutrients. As Indian maize is primarily used a feed ingredient, it doesn’t fetch a high premium.
Last year, stability in maize prices led to high capacity utilisation by user sectors such as poultry and starch manufacturers. However, if the rainfall is low this year, these sectors could find the going difficult.
Last year saw a steep rise in maize procurement, owing to low returns in the open market. Also, the low prices helped starch manufacturers. Vishal Majithia, president of All India Starch Manufacturers Association, said this year, the delay in sowing maize might lead to late arrivals and exert pressure on the sector. The Directorate of Maize Research was developing new varieties of maize which were less water-consuming compared to the available varieties, said project director O P Yadav. Though maize didn’t need a lot of water, delayed and deficient rains might hit the crop, he added.
There are other concerns, too. Northern states, which have earmarked Rs 500 crore to encourage maize cultivation, have little progress on this front. While Punjab had set a maize acreage target of a million hectares, acreage in the state might not exceed 39,000 hectares, said an agricultural scientist. Lack of state intervention in procurement is seen as the primary reason why farmers in the north are reluctant to grow the crop.
