Maize Prices unaffordable; New uses of Biotech Maize

Maize Prices unaffordable

The price of maize this week reached a highest level of Rs.6614 ($143.8) per MT, up from last week’s Rs.6350 ($138.1) per MT, an increase of 4.1%. In the last two weeks the price of maize in the local market has gone up from Rs.6237 ($135.6) to Rs.6614 ($143.8) per MT. The delivered prices in parts of Maharashtra touched a all time of high of Rs.8800 ($191) to Rs.9000 ($195) per MT, making the usage of corn unaffordable in the poultry rations. The price of maize in the market yard is also higher than last year by 13.5%. Last year the price of maize at this time of the year was Rs.5825 ($126.6) per MT.

Reports also indicate that the price of Bajra (Pearl Millet) in the local markets has gone up from Rs.6040 ($131.4) to Rs.7160 ($155.71) per MT, an increase of 18.5%. The price of Bajra is still higher than maize by 8.3% and last week the price of Bajra was lower than maize by 4.8%.

Sorghum prices on the other hand have come down from last week’s Rs.7400 ($161) to Rs.7100 ($154.28) per MT at the market yard, a drop of 4.17%. The price though is higher than last year’s Rs.6900 ($150) per MT. Even though the price of Sorghum has come down in the market yard, it is still higher than maize price in the market yard by 7.3%, making corn the best choice for the poultry rations.

Barley prices this week gained almost Rs.920 ($20) per MT reaching a high of Rs.7790 ($169.39) per MT at the market yard, an increase of 13.3%. The prices are also higher than last year’s prices by almost 17.14%.

With such high commodity prices, it is getting difficult for the end users to use these commodities for poultry or starch manufacturer.

With the current drop in prices of broilers and increase in cost of production due to increase in ingredient prices, it is likely that few of the farmers will close shop. With in the starch sector there is a possibility of increase in prices of starch and its value added products like dextrose etc which will be reflected in price increase of other products as well like processed foods, paper where starch is used and also health care products where dextrose and starch is used.

Maize may not be so much of direct use as wheat for human consumption, but it surely feeds the chickens and is the base stock for many industries, which in turn provides employment opportunities to many Indian people. A short supply of a particular commodity and its high prices will surely get reflected in the overall growth of the country.

While the prices in India may be increasing, prices in US at CBOT have shown a decline in the last two weeks. This week, CBOT closed at $86.43, lower than the previous week’s $87.53 per MT for September delivery. December corn was also down from $95.90 to $92.73 per MT.

While the demand for cereals in on the rise, a report by Rabo Bank projects an increase in us of Vegetable oil by 27% over a 5 year period (2006-2010). The reason for this increase will be due t o increase in world population and income, which will account for a 14% rise in use. The 13% rise will be due to the increased use of vegetable oil to manufacture biofuels.

The report also cited that the highest population and economic growth in the last 10 years has happened in India and China.

New uses of Biotech Maize

As the acceptance of crops derived from biotechnology is increasing, new uses of the technology are being found. While there are reports than vaccines can be administered to children via a GM Banana and Tomatoes can be modified to have increase Lycopene, required to fight cancer, Mexican researchers have proved that GM maize that has New Castle Vaccine.

A report published in Transgenic Research, indicates that the researchers of Center for Research and Advanced Studies (CINVESTAV) in Guanajuato, Mexico inserted a gene from the Newcastle disease virus into maize DNA. The chicken that were fed on the altered/modified maize produced antibodies against the virus. The maize provided a level of protection against infection comparable to that of commercial vaccines.

New Castle disease is an important disease of Poultry and effects millions of poultry birds worldwide. Though commercial vaccines are available, outbreaks are known to occur and there are times when booster doses of the vaccine have to be given at regular intervals. Providing the vaccine through Genetically Modified maize will help fight the disease and reduce losses due to morbidity and mortality.

Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com

Aug 19, 2006