Lower demand pulls down maize prices

Lower demand pulls down maize prices

New Delhi: The average maize prices in India have declined by 4.8%, the US Grains Council has said.

“Prices of maize averaged Rs8,170 per tonne at the market yard last week, against previous week’s Rs8,585 per tonne, and about 2.7% lower than the minimum support price (MSP)," said US Grains Council India representative Amit Sachdev.

However, maize prices were about 19% higher in the Rs6,600-6,650 per tonne range in the corresponding period last year.

Sachdev said, low domestic demand and lower export possibilities led to a decline in maize prices. Export of the commodity was banned till 15 October.

According to traders, currently there are more arrivals in the mandis as kharif harvesting began only last month.

However, maize production is estimated to dip to 13.04 million tonnes, according to first advance estimate for 2008-09 crop.

In the futures market, all maize contracts were down against last week and reported to be lower than the MSP. The near-November contract was down by 2.6%. In the spot markets of Nizamabad and Karimnagar maize prices slipped below Rs9,000 per tonne level.

While, in Nizamabad, prices slipped by about 3.1% against last week to Rs8,830 per tonne, in Karimnagar they were down by 3.6% to Rs8,700 per tonne, and in Davangere by about 3.4% to Rs9,131 per tonne.

Prices of other cereals such as bajra also slumped by 7.4% to Rs7,100 per tonne this week against Rs7,670 per tonne last week. This is about 15.5% lower than the MSP, Sachdev said. The prices are, however, up 8.4% against last year’s Rs6,166 per tonne. Jowar prices also declined by about 10% this week to Rs9,090 per tonne.