BHAGALPUR (Commoditiescontrol) – Maize prices have shot up considerably in this week nearly Rs. 100/100kg in the major markets of Bihar amid shortfall in supply. Arrivals are down while demand for the corn from other states is firm which led the prices to spiral up, said a local trader.
However, fresh imports of corn may bring prices under pressure as requirement of poultry feed and starch companies across the country is fulfilled by Bihar, presently, that is why prices are up but overseas inflow of corn will reduce the demand from southern port towns as traders and millers mill’ requirement will be fulfilled by imports, Ashutosh Anand, Chief A Anand Agro, Naugachia.
India is to import an additional 5 lakh tonnes of corn duty free to meet the shortfall of supply, according to official sources.
The central government trading agency PEC has awarded a contract South Korea’s Daewoo International to supply 2.5 lakh tonnes of duty free yellow non-genetically modified corn.
According to sources, government is considering to import another 5 lakh tonnes of corn on demand of the industry as prices have rallied recently.
Previously, the lowest offer in the tender was $254.55/tonne on cost and freight basis for shipment to the Adani Tuna terminal in the port of Kandla followed by $255.55/tonne C&F for shipment to other terminal in Kandla.
But, PEC was to scrap the tender due to higher rates as the company is reportedly comfortable with price nearly $230 a tonne C&F.
Pappu Yadav, Yadav Brothers, Gulab Baugh has predicted maize prices to trade above Rs. 1,600/100kg in near term amid strong demand from starch and feed sector. According to him, imported corn will also be costlier for the starch companies as according to previous tender quotation corn will cost above Rs. 1,700/100kg in the domestic market. However, price offered by PEC at $230 a tonne would be reasonable for the buyers and it will exert pressure in coming days, said a trader.
As per our previous reports, maize is produced in rabi season only in Bihar at large scale and crops is reported weak, hence, production is down. Also, farmers have sold most of their crops, hence, there is least possibility of much bearish tone in maize prices in near term.
Maize was prices at Rs. 1,520-1,540/100kg at Naugachia and Gulab Baugh on Thursday. Arrivals were estimated around 3,000-4,000 tonnes in major markets of Bihar today, according to trading sources. Maize is supplied from Bihar through Truck and rail rakes. Rail rakes are loaded mostly in Purnia, Naugachia, Mansi and Khagaria.
Other maize trading centres in Bihar are Begusarai, Madhepura, Jamalpur and Muzaffarpur.
(By Commoditiescontrol Bureau; +91-22-40015533)
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