India Spot maize prices surge on supply crunch.

India Spot maize prices surge on supply crunch. Prices of maize surged across key spot markets as arrivals of the coarse cereal continued to decline and demand from feed manufacturers remained robust. Prices are seen firming up in coming days due to aggressive buying by feed manufacturers on anticipation of a severe supply crunch until the new crop arrivals start in late March.

In Davangere, maize arrivals were pegged at 900-1,000 bags (1 bag = 100 kg), compared with 1,200 bags, while in Nizamabad arrivals declined 100 bags to 300 bags.

Prices are likely to surge due to the uncertainty over maize imports and an expected decline in rabi output. Farmers in the country had sown rabi maize over 1.43 mln ha, down 9.8% on year. Acreage was also lower than the five-year average of 1.47 mln ha for the period. Sowing of rabi maize in the country continued to lag on year due to water stress in key producing states in south India.

In the largest growing state of Bihar, the acreage remained unchanged on week at 458,000 ha, down nearly 2% on year. At 458,000 ha, however, the acreage has topped the season’s normal of 444,600 ha.

Due to a sharp fall in key states, maize output for the rabi season is seen declining. Any sharp change in acreage is unlikely here on as the sowing season is almost