Maize output likely to fall 3% as floods hit southern states

Heavy rains in southern states have washed away the hopes of a bumper maize crop this year. Karnataka and Andhra Pradesh, two major producers of maize witnessed sudden floods last week which could affect the kharif maize which is due for harvesting.

According to market sources, about 100,000 tonnes of maize has been lost due to excess rain. This has triggered fears that maize prices, which have been going up year after year, could further shoot up. However, the actual damage will be known only in a few days.

In Davanagere district of Karnataka, of the 1.85 lakh hectares under maize, 45,000 hectares area has been affected due to heavy downpour. This could have affected the standing maize crop, say officials of the state agriculture department.

However, no estimates of crop loss are available as the assessment of damage is still under progress. Davanagere, Haveri, Shimoga and Chitradurga are the major maize growing districts of Karnataka.

Maize was sown in around 11.60 lakh hectares in Karnataka as against the targeted area of 9.50 lakh hectares. Though the delay in arrival of monsoon created panic initially, the revival of monsoon had come as a pleasant surprise. Sowing took place in full swing exceeding the target area.

Kharif maize crop constitutes about 80 per cent of the total production. Of the 19 million tonnes maize output of the country, Karnataka accounts for 10 per cent and Andhra Pradesh accounts for about 20 per cent.

At about Rs 9,000 per tonne at the market yard, Maize prices this year have been 9 per cent higher than last year. The average price for September was Rs 9,220 per tonne.

“Heavy rains have affected harvesting. Arrival of the crop in market would also be hampered due to transportation bottlenecks. This would no doubt spike the prices further,” said a trader based in Davanagere. Prices could go up by around 2-3 per cent, according to some traders. “However, it is too early to assess the impact of floods on prices, as the actual damage to crops is yet to be assessed,” said Amit Sachdev, India Representative, U S Grains Council.

According to the Directorate of Maize Research, though there may not be a bumper crop this year, total maize output in the country may reach last year’s level of around 19 million tonnes. DMR, a body under Indian Council of Agricultural Research, introduced single cross hybrid of maize in 2006. “After introduction of single cross hybrid, which is adaptable to variety of soil and weather conditions, productivity has significantly increased in the country.

Hence, though in some parts of the country the crop is hit due to excess rains, we would manage to be close to last year’s yield,” said Sain Dass, project director, DMR. Maize yield has risen by 20-22 per cent annually since 2006.

India exports about 3 million tonnes of maize every year. Domestic demand for maize is rapidly growing due to demand from poultry industry which consumes about 60 per cent of the country’s total maize output. The second major consumer is the starch industry using 12 per cent of the total produce. Over 20 per cent of the maize produced is used for human consumption.