Maize prices harden as kharif sowing makes slow progress
Maize prices are starting to stiffen due to the slow progress of autumn sowing due to lack of rain in the major producing areas of Karnataka and Maharashtra. As a result, the poultry sector is set to face increasing cost pressures amid a seasonal slowdown in consumption and lower prices.
The typical price (the rate at which most deals are done) at Davangere, a major corn market in the south, has risen by 15-20 per cent from about $1,800 per quintal to levels of about Rs 2,100. The prices of instant maize in Erosion are hovering around INR 2,400, in Sangli at Rs 2,480, in Gulabbagh at Rs 2,050 and in Chhindwara at Rs 2,150. The minimum support price for maize for 2023-23 announced by the center is INR 2090.
Trade expects prices to remain steady at a slow pace of sowing and the new Kharif crop is expected to hit the market sometime in September and October.
Sowing progress
In the week ending July 14, about 45.15 thousand hectares of maize were planted, down 4 percent compared to 47.06 liters in the same period last year. Area decreased by 20 percent compared to the normal rate of 56.26 liters in the period.
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As of 14 July, deficit sowing was seen in Karnataka, with 6.85 litres (10.50 litres last year), Maharashtra at 3.34 litres (5.99 litres), Odisha at 0.73 litres (1.22 litres), and Telangana at 0.56 litres (1.06 litres). to). Karnataka has seen a cumulative rainfall deficit of 26 percent, while Maharashtra has seen a deficit of 17 percent, so far, in the ongoing monsoon.
Interestingly, the area under maize increased in Rajasthan at 9.04 liters (5.25 liters), Madhya Pradesh at 9.74 liters (5.25 liters), Uttar Pradesh at 4.75 liters (4.12 liters), and Himachal Pradesh at 2.38 liters (2.3 liters). , Gujarat at 1.42 liters (1.20 L) and Bihar at 1.66 liters (0.72 L).
The poultry sector, a major consumer of corn, is facing cost pressures with an increase in corn prices and a seasonal decline in consumption amid a decline in chicken prices at the farm gate. “Maize prices have increased by more than 20 percent in recent months, which will add to costs for poultry farmers,” said Sushant Rai, President of the Karnataka Poultry Farmers Association.
Two months slow down
Ray said Farmgate prices for poultry birds, which had touched a high of 130-140 per kg, are now down to the €90 per kg level. Consumption slows down during the holy month of Ramadan Shravan. He said this year because Adik Shravanconsumption will be slow for two months.
Since the corn crop is up to 120 days old, the harvest of the new crop will be in October. Until then, prices are likely to remain flat, Ray said.
Corn is grown in over 76 liters across the country, and production has skyrocketed in recent years. According to the third advance estimate released in May this year, corn production is expected to be 35.91 million tons against 33.73 million tons in 2021-22.