Hybrid maize key to check prices

Demand to touch 2.4 MT against 1.4 MT last year.

Calling for measures to regulate rising maize prices, courtesy huge exports, starch manufacturers are pitching for using hybrid maize seeds.

The All India Starch Manufacturer's Association (AISMA) has already written to the government in this regard. The association believes that the government can repeat the success of the cotton hybrid seed in maize, which could increase the yield and help in regulating rising domestic prices.

The association wants the total area under hybrid maize cultivation, around 35-38 per cent currently, to be raised to 50 per cent, said Amol Sheth, president, AISMA.

"We are not asking the government to pull the plug on maize exports but to regulate the cereal so that domestic supply is not hindered. The estimated production for the next agri year stands at 15 million tonnes. But if exports continue at this rate, the starch industry will face a supply crunch. Instead, the government can go for hybridisation to better the yield since there is less scope for an increase in acreage," Sheth said.

The starch industry has been buying maize for around Rs 790-800 a quintal, with some price variations in different states. The industry's demand for maize, which stood at 1.45 million tonnes last year, is set to touch 2.4 million tonnes this season.

With maize catering directly or indirectly to almost all industries, domestic starch manufacturers are worried about the lack of domestic supply in the long run.

"Moreover, several starch consuming industries such as textiles, pharmaceuticals and paper are scaling up their operations to meet the international demand. Although we expect the government to consider the interest of farmers, we also want the domestic prices of starch to be competitive internationally. This will improve the export viability of finished products rather than just maize."

Some industry representatives had earlier written a letter to the commerce department, requesting the government to regulate exports and ensure the availability of maize at home.