Spurred by expectation of a hike in support prices and shortfall in output, maize crossed Rs 1,000 a quintal mark both in spot and futures market though the government has banned exports of this poultry feed to increase domestic supplies and bring down prices.
Spot prices on Monday touched Rs 1,017 a quintal at Nizamabad in Andhra Pradesh, the main centre of maize trading in the country. Meanwhile, futures prices spiked above Rs 1,000 a quintal level taking firm cues from spot market.
Market experts attributed the price rise to the possible production shortfall and expected hike in minimum support prices. Interestingly, prices have risen significantly within a fortnight after the government put restrictions on exports of maize to check rising prices.
“Even after the ban, maize prices are rising on apprehension that production may fall due to lower yields this year. Also, the rumour that the government may possibly decide on hiking minimum support price (MSP) by month-end — supporting prices,” Karvy Comtrade analyst Amand Rajalaxmi said.
