Maize prices may remain firm on surging demand

AHMEDABAD/KOCHI: Increased demand from the poultry and starch industry is expected to keep maize prices firm. On NCDEX, the maize January contract closed at Rs 1,222 a quintal, up by 0.25% and the March contract closed at Rs 1,280 a quintal, up by 0.47%. On the Nizamabad spot market, prices were ruling at Rs 1,149 a quintal on Thursday.

Despite the high price, demand from the poultry feed market has not shrunk. Though prices have eased a bit over the last month, they are still ruling high. "Usually one-third of the constituents in poultry feed is maize. There is no substitute for maize as a minimum quantity is required to get the yellow colour of the egg yolk,'' said Ravikumar, director of Ravi Poultry Farms near Coimbatore.

Maize prices had shot up to Rs 14 per kg before settling down at Rs 12 per kg. As a result, poultry feed price has remained around Rs 1,100 per 75 kg compared with Rs 950 in the previous year.

In the recent months, feed manufacturers are adopting a wait-and-watch policy. "We have not gone for a raise but if maize prices go up again, we will be forced to increase the feed prices," said Dr Ramamoorthy, general manager of SKM Animal Feeds and Foods.