Grain mkts steady; maize outlook turns bullish on acreage fears

Crop uncertainty and input supply pressures reshape agricultural market sentiment across major producing belts

Grain prices remained largely steady across key spot markets in the country on Wednesday, with traders citing balanced demand-supply dynamics for wheat, maize and rice.

 However, maize prices are expected to gain in the medium term amid fears of lower acreage in the upcoming kharif sowing season. 

  Wheat prices in Indore, Madhya Pradesh, were unchanged at ₹2,580 per 100 kg due to stable demand and sufficient availability with large buyers, traders and stockists. 

  Market participants said purchases were largely need-based amid comfortable supply levels.

  “Production is down 10-15% from the previous year because of crop loss and damage in many top-producing states, which were hit by unseasonal rainfall and hailstorms in March and April,” said local trader Gaurav Kochar.  

Despite weather-related damage, Union Agriculture Minister Shivraj Singh Chouhan recently said India’s wheat production for the current crop year ending June is likely to surpass last year’s 117.94 million tonnes. 

  In contrast, the Roller Flour Millers’ Federation has projected wheat output at 110 million tonnes, factoring in weather disruptions.In Vashi, Navi Mumbai, wheat prices were steady at ₹2,700 per 100 kg due to subdued market activity. Traders expect demand to improve in June once regular buying resumes, although abundant supplies are likely to cap any sharp price rise.

  Maize prices in Indore remained stable at ₹2,125 per 100 kg as demand matched supply. Traders said fresh arrivals from Bihar’s ongoing summer maize harvest could keep prices under pressure in the near term. 

  Bihar’s summer crop contributes around 28% of the state’s maize output. However, concerns over a possible decline in maize acreage during the upcoming kharif season are supporting the medium-term outlook.

 Traders said forecasts of a below-normal monsoon and fears of fertiliser shortages linked to the ongoing West Asia conflict may prompt farmers to shift to alternative crops. 

Rice prices also remained unchanged in Vashi amid sluggish domestic and export demand. Prices of 1401 basmati rice were steady at ₹9,500-₹9,600 per 100 kg, while the 1121 variety was quoted at ₹10,000-₹10,200 per 100 kg. 

(Informist, Mumbai)