Temporary Decline in Corn Prices Due to Government Rice Sale, but Expectation of a Rise Ahead
Due to the government's sale of coarse rice at lower prices in the open market, there has been a decline of 140-150 rupees per quintal in corn prices. However, traders are not panicking and consider this a temporary dip. The arrival of corn from Bihar is still some time away, and the market may be volatile for a few days, but after that, there is a possibility of a strong price increase. However, the earlier expected surge in prices now seems unlikely. Recently, a large volume of corn from the kharif season arrived from Rajasthan and Madhya Pradesh, but due to increased demand from ethanol companies, prices had risen. As the ethanol companies' consumption did not match expectations from December to the first half of January, the government started selling coarse rice from the central pool at 2,250 rupees per quintal, causing a 100-125 rupees decline in corn prices, with prices in Haryana and Punjab now ranging between 2,550-2,600 rupees per quintal. Currently, there is no demand for lighter corn at 2,500-2,510 rupees. In Madhya Pradesh, corn that was selling for 2,400-2,425 rupees per quintal has now dropped to 2,250-2,300 rupees at the rake points, and even at these prices, there is no demand. The new corn harvest will not arrive before 4 months, and the rice being sold by the government will likely be consumed by mid-February. Ethanol companies have already purchased a significant amount of corn, and starch mills have bought less due to high prices, while the poultry industry also has limited stock. Given these conditions, there may be a corn shortage before Bihar's stock arrives. Although the expected rise in prices for January was hindered by the government's sale of lower-quality rice, causing the market to dip 100-150 rupees, there is no need to worry, as there is still a possibility of a 150-175 rupees per quintal rise in the near future. International corn prices are high, reducing the chances of imports, while if prices fall further, exports may increase. Currently, corn is being exported from Bihar's markets to Nepal and Bangladesh, and substantial exports are also happening from Madhya Pradesh. However, rake loading has currently stopped. Due to this, the market may remain under pressure for the next 10 days, but a rise in prices is expected in February.