Maize prices up 17% in a fortnight

Poultry, starch industry badly hit, chicken prices may rise by Rs 30 a kg.

Spiralling maize prices on the back of unchecked exports have taken a toll on the starch and poultry industry. Both sectors have been for long demanding the government to regulate exports.

"Starch prices have already shot up by over Rs 50-100 to Rs 775-825 a bag (of 50 kg) in over a week, and it is highly likely that the prices may go up to Rs 850-900 a bag," said market players.

Since the beginning of the month, spot prices of maize have gone up by 17 per cent to Rs 790 from Rs 675 a quintal. Futures prices have also shown a rally of over Rs 90 to Rs 865 a quintal from Rs 770 a quintal.

"We have no other alternatives but to hike the starch rates to Rs 850-900 a bag. At the same time, glucose rates will also see a rise," said Ganpatraj L Chowdhary, managing director of the largest starch maker in the country, Riddhi Siddhi Gluco Biols.

The country is expecting a little over 13 million tonnes from kharif season against 11 million tonnes last year. Rabi crop normally adds around 2.5-3 million tonnes. The domestic consumption is over 14 million tonnes.

Anuradha Desai, chairperson, National Egg Co-ordination Committee (NECC), said, "Rise in maize prices is literally killing the poultry industry. If the current rally continues for another two weeks, there will be sharp rises in the rates of chicken and egg across the country."

At present, the average prices of chicken are Rs 70-80 a kg and that of eggs are Rs 2.25-2.50 a piece. According to Desai, chicken rates could rise up to Rs 100-110 a kg within a month and that of eggs to Rs 3 a piece by the mid of this year.

"So far the government has not taken any positive step to check the maize prices. Globally, there is a shortage of corn and countries such as China and Argentina have levied duties on exports to ensure domestic availability. The government should come up with similar measures," said Chowdhary.

The ongoing trend is a reminder of the last year's market movement, when maize prices rallied to Rs 1,000 a quintal due to high exports demand. In the US prices were up by $10-12 a tonne. "It means that if country has to import maize, the landing cost will be close to $300 a tonne," they added.

O P Singh, former CEO of Venkateshwar Hatcheries, said if maize exports continued unabated, the project viability of the newer starch units across the country would be at stake. The Rs 2,000-crore starch industry is in the process of adding a fresh capacity of around 650,000 tonnes with an investment of Rs 500 crore.

The country has already exported over 500,000 tonnes to far east and west Asian countries. Another 200,000 million tonnes is on the ports.

Maize-based industries said that exports could surpass a million tonnes leading to shortage of raw material in the country.

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AMAZING RISE

Starch makers want maize exports regulated

Maize spot rates up 17% since begining of the month

Starch prices rose by Rs 50-100 per 50 kg

Another hike of Rs 50-75 on cards

Chicken rates could touch Rs 100-110 a kg

Prices of eggs may rise up to Rs 3 a piece