Maize prices continued to climb up in India last week, especially in Bihar, according to the US Grains Council (USGC).
"Despite pre-monsoon showers across the country, the spot prices of maize in all centres continued to move up, especially Bihar, which is the only place where maize is available. Prices were up by 2.36 per cent to Rs 13,115 per tonne at Gulabbagh (Bihar)," the USGC Representative for India, Bangladesh and Sri Lanka, Amit Sachdev said.
On April 25, maize prices, loaded on to the rake, was at Rs 11,500 per tonne and on May 26, it was at Rs 13,500 per tonne, an increase of 17.39 per cent, which is an indication on the demand and that the pipeline is empty, he added.
Delivered price of maize in Gujarat has also gone up to over Rs 15,500 per tonne.
Crop is expected in Uttar Pradesh soon and that could reduce the pressure on Bihar for some time, but not for long, Sachdev said.
"Rains have affected the grain quality in Bihar to some extent and can affect the loading momentum," he added.
Going forward, he said, monsoon in 2016 is expected to be good and the country is expected to receive 106 per cent rainfall as per predictions of the India Meteorological Department (IMD). However, there is now more concern about the distribution of the monsoon.
"About 123 per cent is expected in September, which would coincide with the harvest and could affect the corn quality, delay the harvest and cause damage to the standing crop as well," he said.
