India's Maize prices to surge on poor rains, demand from poultry industry

04 July 2012
MUMBAI (Commodity Online): Maize (Corn) prices in India is likely to increase further in 2012-13 on poor rainfall affecting the sowing across major states like Karnataka, Andhra Pradesh and Maharashtra and rising demand from the poultry sector.

Delayed rains has slow down the sowing process of all major kharif crops across India and the country is likely to experience the production drop.Farmers are also likely to move to other crops like coarse cereals and soybean, if the present weather scenario continues.

But according to reports, maize sowing till 27 June was 8.211 lakh hec in the country against 16.56 lakh hec at the same time last year.

In addition to it, the rising demand from Indian Poultry Industry as soybean and maize are the major food for the Chickens.

Indian Poultry Industry is booming which is emerging as the world's 2nd Largest market and is growing at the phenomenal rate of 12 to 15% every year.

Similarly, the prevailing dry weather conditions in U.S and rising demand from China has also raised the price of the commodity globally.

India is expected to produce around 22 million tons of maize for 2011-12.

In Chicago Board of Trade (CBOT), corn for July delivery traded at 718 6/8 cents per bushel on 3rd July.

And in India's National Commodity and derivatives Exchange (NCDEX), the commodity for July delivery traded up 0.47% to Rs 1270 per qtl on 4th July.