Maize prices to stay firm this season

Maize prices are expected to remain firm in the new season beginning October after the devastating floods in the largest maize growing state of Bihar is estimated to have destroyed 10 per cent of the country’s crop output, traders and analysts said.

Prices of maize in Nizamabad — a key spot market — are seen rising to Rs 1,050 a quintal in the new season from the current price of about Rs 981, they said.

Dealers said the expectation of higher prices stems from a smaller maize acreage in the current kharif season and fears of extensive damage to the standing crop in Bihar.

STATUS-QUO

Maize prices are expected to remain firm after the floods in the largest maize growing state of Bihar is estimated to have destroyed 10 per cent of the country’s crop output

The kharif maize crop is likely to shrink about 10 per cent from last year’s level of 15.15 million tonnes due to the floods

The starch and poultry industries would be worst hit if maize output drops, as the crop is used as poultry feed

 

Farmers have sown maize over 6.99 million hectares so far in the kharif season, down 6 per cent on year.

A dealer in Nizamabad said actual output is likely to be much lower as almost the entire maize crop in over 15 districts of Bihar has been washed away in the floods after the Kosi river which flows from Nepal into India, changed course on August 18.

Most districts are 8-10 feet under water. State agriculture department officials estimate that crops over 180,000 hectares have been destroyed and Saharsa, Supaul, Araria and Madhepura districts are the worst hit.

Amit Sachdev, Indian representative of the US Grain Council, said the kharif maize crop is likely to shrink about 10 per cent from last year’s level of 15.15 million tonnes due to the floods.

He said the actual extent crop loss would be known only after the water recedes.

High soil salinity and top soil erosion due to floods may even take a toll on the rabi maize crop in the state, the dealer in Nizamabad said.

Ricky Thapar, a poultry feed trader said the starch and poultry industries would be worst hit if maize output drops, as the crop is used as poultry feed.

He said about 60-70 per cent of the rabi maize is produced in Bihar and any fears of low supplies in the new season would lead to a spurt in the prices.

“Bihar grows one of the finest quality of maize and the rates are also very cheap. Therefore our industry depends on maize grown in the state,” S S Chhabra, Consultant, Compound Livestock and Feed Industry said.