India maize rates in the global market continue to remain competitive. Therefore, India remains the preferred market for most south-Asian countries. According to market sources, nearly 400,000 -450,000 ton of maize have been contracted for shipment in June and July. Export destinations are largely Indonesia, Vietnam, Bangladesh and Sri Lanka. FOB prices of Maize of Indian origin is around $242-$245 per ton while Argentina is offering at $223 per ton as on June 18. Other origins such as Brazil, Ukraine are above the Indian origin.
Meanwhile, in the local market inventories are likely to remain at comfortable levels. If the exports remain supported going ahead, inventories could decline sharply amid rise in the demand from the domestic poultry market. This could push prices higher in the local market. The other factor which could help in supporting prices is the sowing pattern in Kharif season. If farmers shift to other crops eyeing lower increase in the MSP, production could see a decline and thus the availability. Government has increased the MSP of maize by just 20 rupees to 1,870 rupees. Sowing would be clear in next 10-15 days.