Maize production is likely to touch a record 25 million tonnes this year as adequate monsoon rains trigger higher acreage across growing states.
According to data available from the Union Ministry of Agriculture, the area under maize, as on October 2, 2013 has risen by 11 per cent to 82.24 lakh hectares from 74 lakh hectares in the corresponding period last year.
Higher than normal rains across major growing states like Andhra Pradesh, Karnataka, Maharashtra and Madhya Pradesh is likely to further push up rabi acreage this fiscal.
As per the first advance estimates of the Ministry of Agriculture, maize production is expected at 17.8 mt compared to around 16 mt as per the fourth estimates for 2012-13.
“Maize production is likely to surpass all records this year. We expect bumper crop as kharif production may cross 18 mt by the time the Ministry comes out with second advance estimates, as the first estimates are usually very conservative,” Raju Choksi, Vice-President (Agri-Commodities), Anil Nutrients Ltd, said here on Monday.
Rabi production last year stood at around 6.25 mt despite bad monsoon and so this year rabi production too is likely to be higher.
Maize prices have been firm since the last couple of months due to scarce supply in the market. With kharif crop likely to arrive in the market from next fortnight onwards, the prices are expected to fall by 7-10%, he said.
Prices will also be impacted because of higher global supply which may further increase following record crop in Argentina, Brazil and the Black Sea Region, which are major exporters to world markets.
India is currently outpriced in the international markets as Indian corn is being offered at $270-275/mt against the Ukrainian variety being sold around $235/mt, he said.
Maize has been trading in the price range of Rs 1,500-1,600 per quintal across major spot markets, much above the minimum support price (MSP) of Rs 1,175 per quintal fixed by the Government last year. This year, the Government has fixed MSP at Rs 1,310 per quintal, higher by about 11 per cent compared to last year.