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Informist, Monday, Mar. 9, 2026

 

By Afra Abubacker

 

NEW DELHI – Prices of key foodgrains rose in many major markets on Monday, as surging crude oil prices lifted biofuel feedstock prices. Maize and rice prices rose in some key markets, but wheat prices remained steady, traders said. 

 

Meanwhile, global commodity markets were highly volatile, tracking gains in crude. Crude oil prices on NYMEX surged to $119.48 per barrel, the highest level since 2022, as the US-Israel military conflict with Iran escalated. "The surge in crude oil prices quickly spilled over into agricultural markets. Vegetable oils, widely used in biofuel production, rallied strongly alongside energy prices," Kedia Advisory said. 

 

Grain futures on the Chicago Board of Trade also reacted, with wheat touching its highest level since October 2024, and corn reaching a 10-month high. Crude palm oil prices on Bursa Malaysia Derivatives hit the highest level since December 2024, and soyoil on the Chicago Board of Trade climbed to its highest level since December 2022. 

 

However, the domestic grain markets were relatively less volatile amid comfortable stocks and expectations of rising supplies with the new crop arrivals. However, prices of biofuel feedstocks such as maize and rice rose in some markets, tracking gains in crude oil prices. 

 

MAIZE prices rose sharply in Indore, tracking the surge in crude oil prices. Maize is a widely sought-after feedstock by ethanol manufacturers, and rising crude oil prices encourage higher biofuel production. 

 

Prices of maize in Indore rose sharply by INR 70 to INR 1,715 per 100 kg, Kochar said. "Due to war, fuel and biofuel markets up," he added. Surging crude prices have pulled up maize and palm oil prices on global exchanges, as they are used to produce ethanol and biodiesel for blending with conventional fuels. 

 

However, maize prices have risen from a lower base. "Until the landed prices go up to INR 2,400 per 100 kilogram, ethanol makers will not feel the pinch," C.K. Jain, president of Grain Ethanol Manufacturers Association, said. "Currently, the landed prices are around INR 2,000. There is usually a gap of INR 2.0-INR 2.5 from farm gate prices to (distillery) godown prices," he added. 

 

However, maize prices in Davangere, Karnataka, were steady at INR 1,650-INR 1,750 per 100 kg amid expectations of higher supplies, said Shiva Kumar, a local trader. Arrivals were also steady at 2,000 bags (1 bag = 60 kg), he said. Buyers are mostly waiting for the commencement of new rabi crop arrivals, as they anticipate prices to fall further. Prices may remain in this lower range and then fall further when new crop arrivals begin, he said.

 

WHEAT prices in Kota, Rajasthan, were steady at INR 2,250-INR 2,325 per 100 kg, said Ravi Mehta, a local trader. Old crop arrivals are tapering down, while new crop arrivals are picking up pace. However, the quality of new crop arrivals remained poor as most of it is moisture-laden. 

 

On Monday, 4,000 bags (1 bag = 50 kg) of the old crop arrived in the market, down 2,000 bags from Friday. The market also received 30,000 bags of the new wheat crop, priced lower at INR 2,150-INR 2,230 per 100 kg due to high moisture content, Mehta said. 

 

Going ahead, rising new crop arrivals and comfortable carry-forward stocks with bulk consumers are likely to keep wheat prices under pressure. In addition, the ongoing new crop arrivals with higher moisture content are further weighing on prices. 

 

The price of wheat in Indore, Madhya Pradesh, was down INR 10 at INR 2,450 per 100 kg, said Gaurav Kochar, a local trader.

 

Prices of the 1401 and 1121 varieties of basmati RICE in Kota rose by INR 300 to INR 7,800 per 100 kg, Ravi Mehta said. Rice prices rose, tracking gains in agricultural and crude oil prices. However, abundant stocks and expectations of rising supplies with the commencement of rabi paddy arrivals are likely to limit prices. In addition, exports to West Asia remain uncertain amid the ongoing conflict.  End

 

US$1 = INR 92.33

 

Edited by Avishek Dutta

 

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