Maize prices to hover around MSP

Maize (Zea mays L) is most widely distributed crops of the world which is cultivated in diverse agro climatic conditions of tropics, sub-tropics and temperate regions.  Globally, maize is known as queen of cereals because it has the highest genetic yield potential among the cereals. Maize is utilized domestically for poultry and cattle feed, food, starch manufacturing and other industrial purposes.

Area under maize in the world during 2013-14 accounts for 141.77 m ha with a production of 878.31 mt. USA and China accounts for more than 40 per cent of area which together contributes around 55 per cent of total world production.

Among the cereal crops in India, with annual production of around 23.29 million tonnes from 9.5 million hectares, Maize ranks third in production and contributes to 2.4% of world production with almost 5% share in world harvested area in 2013-14.

Karnataka, Andhra Pradesh, Maharashtra, Tamil Nadu, Rajasthan and Uttar Pradesh together contribute 60 per cent of area and 70 per cent of maize production in India.  Karnataka produced 3.25 million tonnes of maize from 1.3 million hectares in the year 2012-13. The estimated maize export from India is around 3.5 million tonne in 2013-14.

Major markets of maize in Karnataka are Davanagere, Belgaum and Bagalkot. The sowing period of maize in Karnataka starts from the mid of May and harvesting by middle of December. So, for the benefit of farmers, the NCAP Network project on Market Intelligence functioning in the Department of Agricultural Marketing, Co-operation and Business Management, UAS Bangalore collected the modal prices of maize that prevailed in Davanagere market during the last eleven years and econometric analysis was carried out to predict the prices of maize for the harvesting months. Also an opinion survey of maize traders was conducted. Based on the analysis and Market survey, it is forecasted that maize would fetch a modal price of around Rs.1150-1250 per quintal during harvesting months. During 2014-15 the crop production was high in USA, Brazil and Argentina, which affected Indian exports. The production was high in Karnataka, Andhra Pradesh, Maharashtra, Bihar, Tamil Nadu and Orissa. Also the demand from poultry sector is declining as broken rice and jowar are getting substituted in the place of maize, keeping in view of the fact that 2014-15 crop season stocks position is good, the prices are unlikely to increase much above the MSP during this Kharif 2015 harvest period. This forecast prevails for current market sentiments & monsoon and could vary with changes in the market situation and rainfall. Farmers are advised to take suitable sowing decisions.

RESEARCH TEAM

Dr. M. S. Jayaram, Dr. C. P. Gracy, Dr. M. R. Girish,

Dr. Sakamma S, Mrs.Mangala V Reddy

 Department of Agricultural Marketing, Co-operation and Business Management

    UAS, GKVK, Bangalore-65