Maize Prices Dip Below MSP as Record Crop Arrivals and Weak Demand Pressure Markets (Daily Krishicode Agriculture News)

New Delhi: Maize prices across India have fallen below the Minimum Support Price (MSP) of ₹2,400 per quintal, amid heavy arrivals, easing demand from ethanol producers and poultry feed makers, and expectations of a record kharif harvest.

Market Trends

Modal prices—the benchmark rates at which most trade occurs—are currently between ₹1,300 and ₹2,100 per quintal across major mandis, well below MSP levels. Farmers are urging the government to step in with procurement measures.

In response, Telangana has initiated maize procurement at MSP, aiming to purchase around 8 lakh tonnes of the cereal. The state’s procurement drive, covering 123 centres, is expected to conclude by December 15.

Record Acreage and Output

Farmers expanded maize cultivation this kharif season by nearly 1 million hectares, bringing the total area under the crop to 9.49 million hectares, up from 8.43 million hectares last year. Despite unseasonal rains in some regions, India’s maize output for 2024–25 is projected at 422.81 lakh tonnes, a sharp rise from 376.65 lakh tonnes in 2023–24.

Demand Eases from Key Sectors

According to Rahul Chauhan of IGrain India, ethanol producers have shifted toward alternative feedstocks such as rice and sugarcane, following the government’s allocation of 5.2 million tonnes of rice for ethanol production in 2025–26. This shift, coupled with increased availability of Distillers’ Dried Grains with Solubles (DDGS) for poultry feed, has reduced maize demand from both ethanol and livestock sectors.

Regional Impact and Farmer Concerns

In Maharashtra, prices have plunged despite localized crop losses.

• Jalna APMC: Model price at ₹1,450 per quintal (₹950–₹1,800 range)
• Sangli APMC: Last year ₹2,350–₹2,450; now sharply lower

Farmers such as Baba Sawant from Sangli report high arrivals despite rainfall damage, as more growers switched to maize cultivation this year.

Agro-industrialist P.P. Pawar noted that last year’s higher maize prices were driven by ethanol demand, urging the government to revise maize-based ethanol prices upward so that farmers can realize MSP.

Telangana Seeks Central Support

Recent Cyclone Montha caused severe damage in Andhra Pradesh and Telangana, submerging large tracts of maize under floodwaters. Telangana’s Agriculture Minister Tummala Nageswara Rao has written to Union Agriculture Minister Shivraj Singh Chouhan, requesting that maize be brought under the Price Support Scheme (PSS) to help distressed farmers.

“The state will procure maize worth ₹2,500 crore to protect farmers in this depressed market. However, the Centre’s support is crucial,” Rao stated.

India’s maize sector faces a paradox of abundance—record production and falling prices—amid shifting ethanol dynamics and subdued feed demand. While Telangana has stepped in with state-level procurement, farmers across several states continue to seek central intervention to stabilize returns below the MSP threshold.