Maize prices continue its way up with limited stock

PUNE: Traders reckon maize prices will remain bullish till October when the new kharif crop hits the markets, despite a 20% jump in prices during the past three months. The processing industry has already approached the government demanding duty-free imports of the commodity.

The spot NCDEX prices of maize in Sangli market have increased by about 20% in the past three months to Rs 1,750/quintal on June 14 from Rs 1,460/quintal on March 14.

The maize production of India in 2015-16 (as per third advance estimate of 2015-16) is expected to be 21.02 million tonnes compared with 22.74 million (less 7.5%), as per the third advance estimate of 2014-15. The final maize production in 2014-15 was 23.67 million tonnes.

India has been a traditional exporter of maize to the neighbouring as well as South East Asian countries, but back-to-back droughts forced India to go for imports after a gap of 16 years. With forecast of an excess monsoon this year, traders are hopeful of resuming maize exports in the current fiscal.