Maize prices have increased Improvement in monsoon has increased throughout India due to low availability of stock and high demand. India’s growing population and change in eating habits is increasing demand for non-vegetarian food. According to estimates demand for poultry in India has increased by 5% thereby increasing demand of maize by poultry feed makers who use maize for feeding animals. Maize supply is very limited especially in states of Bihar and Uttar Pradesh who produce high quantity of maize. Stockists of Maize cleared their stock when the prices started increasing couple of months back. Low supply urged the Government to allow import of 500000 tons of maize at 15% custom duty which, normally incurs a basic duty of 60 per cent. Feed makers are shifting from maize to wheat and other grains because of low availability and high priced Maize.
Due to late monsoon rains, many farmers in India shifted to growing Maize from Paddy and Pulses. Maize is the third biggest cereal grown in India after paddy and wheat. According to data from agricultural department, maize has been sown in 6.38 million hectares of land as on 25th of July 2019 that is 136,000 hectares more than previous year. Due to depleting water table in states of Haryana and Punjab, the Governments of these states urged farmers to opt for alternative crops like maize, cotton and pulses. According to estimates, around 70,000 hectares of paddy growing farmers have shifted to alternative crops in Punjab and Haryana. We expect prices of Maize to correct in the coming harvest season due to increased sowing in India. However, the current rise will carry on due to low stocks throughout the country.
In other news, nearly 1600 tonnes of wheat was damaged at Punjab State Warehousing Corporation Godowns in Bathinda, Punjab. Increased rains led to water accumulation in the area, which damaged/destroyed stock worth three crores.
Find the current prices as on 30.07.2019 below:
| Commodity | Price (Per Quintal) |
| Wheat Mill Quality Top | INR 2100 |
| Wheat Mill Quality Normal | INR 2030 |
| Wheat Mill Quality Low | INR 1960 |
| Wheat Mill Quality (South India) | INR 2500 |
| Wheat MP Sharbati Medium Quality | INR 2700 |
| Wheat MP Sharbati (Retail) | INR 3100 |
| Bajra | INR 2330 |
| Jowar Premium | INR 3350 |
| Jowar Medium | INR 2350 |
| Jowar Maharashtra Quality | INR 2250 |
| Barley (Rajasthan) | INR 1860 |
| Maize (Mandi) | INR 2350 |
| Maize (Wholesale) | INR 2450 |