Maize Market: Limited Scope for Price Rise in the Near Future
Due to a sharp increase in maize arrivals, prices in Bihar's mandis declined last week. In central Bihar, maize prices dropped to ₹2100–₹2125 per quintal, marking a fall of around ₹50 during the week. Although some stockists became active at these lower levels, aggressive buying is missing this time due to the losses traders faced in last year's price rally. Large companies have started making purchases, but the market remains under pressure, and a significant upward movement is unlikely in the near term. This year, maize production in Bihar has been good, and old stock is still available in large quantities in Madhya Pradesh, further increasing overall supply. As a result, maize prices in states like Haryana and Punjab have settled between ₹2400–₹2450 per quintal depending on quality. Additionally, the availability of broken rice is expected to remain steady throughout the year, and its prices are also lower compared to government-supplied damaged rice (priced at ₹22.50/kg). Given this scenario, broken rice is emerging as the preferred choice for ethanol production over maize. Experts suggest that with the consistent and cheaper supply of broken rice, maize demand for ethanol could see a significant drop.