Business Daily from THE HINDU group of publications
Wednesday, Aug 23, 2006
Agri-Biz & Commodities
States - Tamil Nadu
Maize prices soar in TN
At a glance
Prices ruling at Rs 800-850/quintal against Rs 600-650 a month ago.
Delay in FCI tender; actual release of stocks yet to happen.
Private traders have exhausted their stocks fearing price fall.
Coimbatore , Aug. 22
Maize prices in Tamil Nadu has increased sharply, putting the poultry feed manufacturers, the largest chunk of corn consuming segment, in a tight spot.
This being the leanest season for maize crop arrivals and with least carryover stocks at the consumers/ trade end, demand has put pressure on sellers holding whatever quantities with them to jack up the rates every passing day, poultry industry and maize trade sources said.
The maize prices have jumped from Rs 600-Rs 650 during mid-July to Rs 750/780 a quintal and on Tuesday, traders quoted spot price at around Rs 800-850, the sources said.
One of the major reasons for the sharp rise in the maize price, according to Mr P. Valson, Secretary of the All India Poultry Products Exports Association, is the delay in the release of the corn stocks held with the Government.
The Food Corporation of India (FCI) holding maize stocks in Andhra Pradesh and Karnataka, which normally floats tenders during April/May and effect the supplies in June, inordinately delayed it this year leading to rise in prices, he added. He said though the Union Government had finally offered to release the maize for the poultry sector at a concessional Rs 550 a quintal 10 days ago, the actual release of stocks from the FCI was yet to happen till this time.
The Centre had early this month announced release of 1.25 lakh tonnes of maize for the poultry farmers in Tamil Nadu, Andhra Pradesh, Maharashtra and Karnataka.
Pvt stocks exhausted
Mr Purushotham of Shiv Shankar Trading Company from Bangalore, dealing in grains and supplier of corns to the poultry farms and trade, said the private trade rushed through and exhausted its maize stocks well ahead as they feared that once FCI offloaded its stocks it would cause prices to fall.
But now the Centre had delayed releasing its stocks and with no carryover available, it pushed up the prices. He said the Karnataka spot price was quoted at Rs 800 a quintal and in Tamil Nadu at Rs 870.
Poultry industry sources here feel that with the arrivals of new maize crop expected by middle of October, the current price surge would be end soon. Further, the maize stocks the Centre had agreed to release from FCI godowns are likely to hit the market any time now. In such circumstances, the prices would fall.
Mr Valson felt that the unrestrained maize price surge at current levels would lead to a rise in the production cost for the layer egg sector in the range of 1-3 paise an egg as there had been a 30 per cent rise in the maize price in the past two months.
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