Maize production in India this year is likely to touch record 25 million tonnes as adequate monsoon rains trigger higher acreage across growing states.
According to data available from ministry of agriculture, area of maize as on 2 October has risen by 11 per cent to 82.24 lakh hectare as against 74 lakh hectare in the corresponding period of last year.
Higher than normal monsoon across major growing states like Andhra Pradesh, Karnataka, Maharashtra and Madhya Pradesh is likely to further push rabi acreage this fiscal.
As per the first advance estimates of ministry of agriculture, maize production is expected at 17.8 mln tonnes compared to around 16 mn tonnes as per fourth estimates for 2012-13.
''Maize production is likely to surpass all records this year. We expect bumper crop as kharif production may cross 18 million tonnes by the time Ministry comes out with second advance estimates as first estimates are usually very conservative,'' says Raju Choksi, vice-president (agri-commodities) of agro nutrients manufacturer Anil Nutrients Ltd.
Choksi adds that rabi production last year stood at around 6.25 mn tonnes despite bad monsoon and so this year; rabi production too is likely to be higher.
''Maize prices have been firm since last couple of months due to scarce supply in the market. With kharif crop likely to arrive in the markets from next fortnight onwards, the prices are expected to fall by 7-10 per cent,'' he says.
The prices will also be impacted because of higher global supply. ''Global supply of maize is likely to rise following record crop in Argentina, Brazil and Black Sea Region; who are major exporters to world markets.
India is currently outpriced in the international markets as Indian corn is being offered at $270- 275 per metric tonnes FOB Kakinada/Vizag against Ukrainian maize that sells for around USD 235 per metric tonnes CNF South Korea.'' Choksi says.
Maize has been trading in the range of Rs.1,500-1,600 per quintal across major spot markets, much above minimum support price (MSP) of Rs1,175 per quintal fixed by government last year. This year, government has fixed MSP of Rs1,310 per quintal, higher by about 11 per cent compared to last year.