Maize prices remain high

Maize prices remain high

Despite a duty free regime announced by GOI on Jan 25, 2007, the details of which can also be found on the link given below

Press release for duty free imports of corn
http://www.cbec.gov.in/cae/press-release/cus-duty-maize.htm

The official notification
http://www.cbec.gov.in/cae/customs/cs-act/notifications/notfns-2k7/cs9-2k7.htm

The maize prices in the mid week did slide down by about 2% to Rs.7200 – 7300 per MT levels at the market yard, but by the end of the week the prices were up to Rs.7800 – 7900 levels at the market yard, thereby registering an increase of 8% over mid week. The delivered prices by the end of the week were up to Rs.10,000 per MT.

The delivery prices in Gujarat, by the end of the week had reached Rs.11000 per Mt levels, ringing alarm bells. In Tamil Nadu, the hub for poultry, the delivery prices touched Rs.9300 per MT.

In the midweek the future prices of maize for Feb, March, April, May were at Rs.7820, 7980, 8140 and 8235 respectively. By the end of the week, the prices were up to Rs.7930, 8100, 8250 and 8380 per MT respectively.

Spot prices of maize at Nizamabad which is the benchmark market were RS.7150 per MT mid week and were up to Rs.7400 per Mt by the end of the week, gaining 3.4% in 3 days.

In all likelihood the prices of maize will remain high due to high demand lower supplies. All will depend on the Rabi crop arrivals in the markets and how prices behave then.

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

Feb 03, 2007