Maize prices continue to trade near record levels of 2,600 rupees per 100 kg in Nizamabad over the last few weeks despite higher kharif sowing acreage. Lower arrivals, demand from poultry feed and starch manufacturers and talk of damage to the sown crop in key growing regions of Karnataka has made the grain price to trade higher.
Since the start of the Kharif sowing period, intentions were loud and clear that farmers may cover higher acreage under maize this season due to phenomenal growth in the prices. However, monsoon rains initially arrived late and now over the last few days have been excess in key growing regions of Karnataka raising questions over the health of the crop. This has triggered further impetus to the prices.
Meanwhile, farm department in its fourth advance estimates have downward revised the 2018-19 output estimate of kharif maize by 7.7% to 1.9 mln tn from its earlier estimate.
Maize prices are likely to trade higher due to supply shortage and worries of some damage to the sown crop in Karnataka on account of excess rains and threat of fall army worm in Andhra Pradesh and Telangana.