Maize prices to rule steady upto April, 2012


     During 2010-11, maize was cultivated in 167 million hectares (ha) leading to a production of 860 million tonnes globally. During 2011, global maize area and production reached a historical high of 167 million ha and 860 million tonnes which is 21 per cent and 43 per cent higher in area and production compared to 2001. USA, China, Brazil, Mexico, Argentina and India together accounts for 75 per cent of the world maize production. The global demand for maize in the ethanol sector is strong enough to support the increased production. |

     The major growing states that contribute to maize production in India are Karnataka (18 %), Andhra Pradesh (17 %), Maharashtra (11 %), Bihar (9 %), Rajasthan (7 %), Madhya Pradesh (6 %), Uttar Pradesh (6 %) Tamil Nadu (5 %), and Himachal Pradesh (3 %). Productivity of maize is highest in Tamil Nadu (4.68 tonnes/ ha) followed by Andhra Pradesh (3.52 tonnes / ha), Punjab (3.41 tonnes/ha) and Karnataka (2.42 tonnes/ha). 

     Around 11.44 lakh tonnes of maize is produced in Tamil Nadu annually. Maize is mainly grown in Perambalur, Dindigul, Coimbatore, Salem, Erode, Virudhunagar, Villupuram, Theni, Tiruchirapalli and Tirunelveli districts. These districts together contribute 90 per cent of the total area and production of maize in Tamil Nadu

     A major shift in maize cultivation has been observed in recent years. Shorter duration, less cost of cultivation, less water requirement and less risk compared to other crops are the causes for the shift towards maize cultivation in the state. We can expect the same trend during this season also. Trade sources report that this year the arrivals from Tamil Nadu will start only by end of December. Tamil Nadu poultry firms are now procuring maize from Karnataka and Andhra Pradesh. Poultry firms are not in a position to hold stocks since they expect a bulk crop from Tamil Nadu from December end. 

     Good crop arrivals in major growing states and expected export and domestic demand will keep the price to rule steady till December end. Soon after arrivals, poultry firms will procure the harvested maize to build their stocks for the forthcoming months. Hence there are lesser chances for the prices to decline much. Trade sources inform that there will be supply crunch after March and the price may go above Rs.1200/quintal since the demand for maize will exceed the supply.

     Farmers are interested to know whether the harvested produce could be sold immediately or stored for some time. To answer their queries and to guide them in taking a right decision, Domestic and Export Market Intelligence Cell functioning in Centre for Agricultural Rural Development Studies, Tamil Nadu Agricultural University analysed the monthly prices that prevailed in Udumalpet market for the past fifteen years. The results indicated that after December 2011 to April, 2012 the price may rule around Rs.1,050-1,100 per quintal. After April, 2012 the prices are expected to increase above Rs.1200. 

     Hence farmers, who can store the produce, are recommended to store up to April, 2012 and sell the same. If not possible the produce could be sold immediately upon harvest since the prices are not likely to increase upto end of March, 2012.

For further details contact:

Domestic and Export Market Intelligence Cell
Centre for Agricultural and Rural Development Studies
Tamil Nadu Agricultural University
Coimbatore-641 003, Phone: 0422-2431405

For Technical Details please contact:

Dr.G. Nallathambi
Professor (Maize Breeding)
Centre for Plant Breeding and Genetics
Tamil Nadu Agricultural University
Coimbatore-641 003, Phone: 0422-2450507
Cell no: 9486913279

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