Maize Market Meltdown: Oversupply Drag Prices Down

Rising arrivals in local maize markets, weak buying, and subdued demand from the ethanol and poultry sectors have already put heavy pressure on farmers. Now, news of duty-free maize imports from the United States has pushed the market further to its knees. Although some mandis in Madhya Pradesh showed slight relief last week, there was no sign of a sustained uptrend. As soon as prices moved higher, traders and processors stepped back, causing the market to fall again. Yesterday, the Chhindwara market closed at ₹1,750 per quintal with an inflow of around 5,000 tonnes. However, only 3,000–4,000 tonnes were actually auctioned; the remaining stock was carried over to the next day. Today again, about 5,000 tonnes are expected to arrive, which may keep prices soft. Meanwhile, prices stood at ₹1,700 in Nagpur, ₹1,975 in Sangli, ₹1,600 in Akot, ₹1,735 in Ratlam, and ₹1,730 per quintal at the Tirupati Starch Plant in Indore. Production this year is estimated to be 10–15% higher than last year, adding extra pressure on the market. Neither companies nor major traders are interested in stocking up, and warehouses remain under-filled. A few racks are being loaded at ₹1,750, but this limited activity is not enough to strengthen the market. In the ethanol sector, government norms mandating 40% rice usage have slowed maize consumption further, reducing the chances of any immediate price recovery. The poultry industry also has access to cheaper alternatives, so their buying remains restricted. Market analysts believe that unless export demand improves or the government begins procurement, the decline is unlikely to stop. Notably, if prices fall another ₹60–80 from current levels, export parity at eastern ports could strengthen, which may become the only factor capable of stabilizing the market.

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