Maize Prices Under Pressure Amid Expectation of Bumper Crop and Stockist Selling
Maize prices across key Indian markets remained within a narrow range as selling pressure from stockists and cautious buying ahead of the expected bumper kharif crop kept sentiments weak. Prices Declining in Southern India Over the past few weeks, southern India, particularly Tamil Nadu, has witnessed a notable drop in maize prices: In Namakkal, prices dropped from 2700/quintal at the end of July to 2500 on September 1. In Papampatti, prices declined from 2500 to 2450. In Sangli (Maharashtra), prices fell from 2575-2600 on August 12 to 2400-2475 on September 1. Prices Stable in North and Central India — But Downside Likely Prices in northern, central, and eastern India have remained largely stable in recent weeks. However, with the expected increase in arrivals from central India, a price correction may soon follow. Increased Selling and Anticipation of New Crop Tamil Nadu buyers have significantly reduced their maize purchases from Bihar, now awaiting fresh arrivals from Karnataka and Telangana in the coming weeks. Stockists holding kharif stock are actively selling, keeping supply smooth. Madhya Pradesh traders, having faced losses last year, are reluctant to stock maize this season, which may lead to heavy arrivals in mandis and further price declines. Production Expected to Rise, Price Correction Likely Trade sources estimate that India’s kharif maize production this year could be 10–15% higher than last year. If spot prices in Madhya Pradesh drop to ₹2,000/quintal, maize could be delivered by rail to Bengal at ₹2,300, undercutting current prices from Bihar (₹2,360). This could pull down prices in Bihar (currently ₹2,200–2,370) as well. Impact of Weather and IMD Forecast Heavy rainfall during the latter half of August in Andhra Pradesh, Telangana, Punjab, Maharashtra, Rajasthan, and Karnataka has raised concerns about crop damage. The India Meteorological Department (IMD) has predicted 109% above-normal rainfall in September, adding further uncertainty. August already saw 5% excess rainfall — the seventh highest since 2001 — especially in north-west India and southern peninsular regions. Local Market Scenario In Uttar Pradesh’s Kasganj, Chhira, Etah, and Ujhani belt, maize is arriving in large volumes. Due to ongoing rains, much of the crop is arriving wet, making it unfit for storage. Loose trade is happening at 1800–2120/quintal, while quality dry maize at rake points is being sold at 2160–2180/quintal. Most of this supply is headed toward ethanol and starch plants. Demand Outlook The market is currently driven by starch factories and ethanol plants. Government focus on rice procurement has limited its support for maize. The poultry sector is also showing weak demand ahead of the Shraddh period. Conclusion: The maize market is under pressure with weak signs of recovery. If demand improves, a slight price rebound is possible — farmers may consider selling at that time. The direction of prices in the coming weeks will depend heavily on weather patterns and the pace of new arrivals.