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Informist, Tuesday, Nov. 5, 2024

By J. Navya Sruthi

MUMBAI – Prices of wheat, maize, and rice were steady in key markets across the country Tuesday, traders said. Maize prices were steady and are likely to stay range-bound with a slight downward bias over the next few days as supply of the crop with lower moisture content is seen rising, traders said. The crop with low moisture content fetches higher prices and higher supply in the spot market may weigh on the prices. 

Prices of MAIZE were steady in Karnataka's Davanagere at INR 1,600-2,200 per 100 kg and arrivals were also steady at 20,000 bags (1 bag = 60 kg), said Shiva Kumar, a local trader. Arrivals are likely to increase from next week, which will weigh on the grain's prices, Kumar said.  

Currently, wet maize, with 18% moisture content is being sold at INR 2,200 per 100 kg, Kumar said. From next week onwards, the moisture content is expected to fall to 16% and this dry grain will be sold at INR 2,200 per 100 kg, he said. This is because arrivals are likely to increase to 30,000 bags or even more, which will weigh on maize prices, he added. The continuous rains in the region have led to excess moisture content in the grain and, now it has stopped raining, moisture content in the grain has also decreased, aiding prices. 

The government has pegged 2024-25 kharif maize production at a record 24.5 million tonnes, against 22.2 million tonnes a year ago, according to the first advance estimates. Maize production in Karnataka, one of the top maize producers, was pegged at 4.6 million tonnes, slightly lower than 4.8 million tonnes a year ago.  

Prices of mill-quality WHEAT in Rajasthan's Kota were steady from Monday at INR 2,800 per 100 kg, said Aniket Mehta, a local trader. Prices of the same quality wheat were steady in Mumbai's Vashi market at INR 3,300 per 100 kg on Tuesday, said Devendra Vora, a wholesale trader. 

Arrivals in Kota market rose by 2,000 bags (1 bag = 50 kg) to 8,000 bags as farmers were selling the leftover grain at current prices, Mehta said. "Farmers save a part of wheat produced the previous year to sow in the current year and once they are done with the sowing, then the leftover wheat is sold," Mehta said. 

Wheat is one of the most important rabi crops and is grown only once a year. It is usually sown during mid-October and November, and harvested before April. The government had pegged 2023-24 (Jul-Jun) wheat output at 113.3 million tonnes, significantly up from 110.6 million tonnes the previous year. However, the traders had pegged last year's wheat output at 100-105 million tonnes, way lower than the government's estimates due to erratic monsoon and crop damage. 

But this year, the trade participants expect higher wheat production due to above normal rainfall during the southwest monsoon season. The southwest monsoon not only bodes well for the kharif crops but also helps rabi crops as staggered rainfall will increase soil's moisture content.  

Prices of RICE were steady in the Vashi market at INR 6,000-6,200 per 100 kg, Vora said. Basmati rice prices were also steady at INR 7,300-7,800 per 100 kg, he said. Rice prices are likely to remain range-bound with a downward bias this month as there will be new crop arrivals in the market and also because rice millers will start milling paddy, Vora said.

On Tuesday, the government pegged the kharif rice output at a record 119.9 million tonnes, against 113.3 million tonnes during the same period the previous year, the first advance estimates showed. Uttar Pradesh, Punjab, West Bengal, Chhattisgarh, and Telangana are the top five rice producers. End 

Edited by Akul Nishant Akhoury

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