Maize prices cross Rs 1,000 per quintal mark

NEW DELHI: Spurred by expectation of a hike in support prices and shortfall in output, maize crossed Rs 1,000 per quintal mark both in spot and futures market though the government has banned exports of this poultry feed to increase domestic supplies and bring down prices.

Spot prices today touched Rs 1,017 per quintal at Nizamabad in Andhra Pradesh, the main centre of maize trading in the country. Meanwhile, futures prices spiked above Rs 1,000 per quintal level taking firm cues from spot market.

Market experts attributed the price rise to the possible production shortfall and expected hike in minimum support prices. Interestingly, prices have risen significantly within a fortnight after the government put restrictions on exports of maize to check rising prices.

"Even after the ban, maize prices are rising on apprehension that production may fall due to lower yields this year. Also, the rumour that the government may possibly decide on hiking minimum support price (MSP) by month-end, supporting prices," Karvy Comtrade Analyst Amand Rajalaxmi told media.

Rajalaxmi said, "So far, the government data shows 15 per cent increase in maize acreage, but the field observation reveals slower crop growth, which may yield less output."

Arrivals, which would begin from August, may not be good this time and prices may come under pressure. According to sources, maize production is expected to be over 16 million tons this year, compared to 18.5 million tons in the last year.

Expectations that the government may hike minimum support price (MSP) of maize from Rs 620 to Rs 840 per quintal this month are also adding to the rally, they said.