Maize prices soften due to robust production and weak demand
08-Nov-2025 01:02 PM
New Delhi. Due to strong arrivals of the Kharif crop in major producing states and weak demand from the poultry feed and ethanol manufacturing industries, the wholesale market price of maize has fallen well below the minimum support price (MSP).
This is causing huge financial losses to farmers. Government procurement is also taking place only in Telangana.
The minimum support price of maize has been increased by Rs. 175 from Rs. 2225 per quintal for the 2024-25 season to Rs. 2400 per quintal for the 2025-26 season, but its model price in various markets is ranging between Rs. 1600 and Rs. 2100 per quintal.
Data from the Union Ministry of Agriculture shows that during this year's Kharif season, the national maize production area jumped sharply to an all-time high of 9.49 million hectares, an increase of 1.06 million hectares from last year's sown area of 8.43 million hectares.
Although excessive rainfall, waterlogging, and natural disasters such as floods caused initial damage to maize crops in some areas, overall production is expected to rise to new record levels.
On the other hand, demand from the ethanol manufacturing industry, a major consumer of maize, is experiencing weak demand.
Similarly, due to the good availability of Distillers' Dried Grains with Solubles (DDGS), consumption in the poultry feed industry is rapidly increasing, weakening demand for whole maize there.
Maize supply and availability will remain comfortable going forward, and if there is no strong demand, price pressure may persist. This is likely to impact sowing in the Rabi season.
Farmers had shown great interest in maize cultivation in the Kharif season in the hope of getting attractive and profitable returns, but if they do not get better income, then the enthusiasm of the farmers may cool down.
During October last year, the price of maize was Rs. 1900-2300 per quintal in Jalna, Maharashtra and Rs. 2350-2450 per quintal in Sangli, which has come down significantly this time and its model price in Jalna has become Rs. 1400 per quintal.