Expectations for Maize Prices to Rise
Maize is extensively cultivated in several regions of India and is considered an important crop for farmers. In 2024, the area for maize sowing during the Kharif season has increased to 8.86 million hectares, which is about 341,000 hectares more than last year's 8.465 million hectares. This increase raised expectations for higher maize production; however, heavy rains and flooding in some parts of the country have significantly damaged maize crops. As a result, it is anticipated that maize production may remain on par with last year's levels. The use of maize has also evolved over the past few years. While it was primarily used for poultry feed, animal fodder, and starch production, the demand in the ethanol production sector has rapidly increased, leading to higher consumption. Additionally, India may import maize from Myanmar and Ukraine, where non-GMO maize is produced, benefiting India's ethanol industry. Therefore, there are strong expectations for both the prices and consumption of maize to rise, which is a positive sign for farmers. The primary reasons for growth in this sector include the rapidly increasing demand for maize and government agricultural support schemes, making maize a profitable crop and encouraging farmers to cultivate more. Agricultural experts believe that flooding weakens plant roots, affecting their growth potential, which negatively impacts overall production. This year, it is estimated that maize production will remain roughly the same as last year.