Maize-Feed/Industrial Grade Maize (Zea mays) belongs to the grains family Graminae and is known as Queen of Cereals due

to its diverse uses. Also called corn, maize requires moderate climate for growth, excess or deficient rains adversely affect yields as well quality. It grows well in loamy soils. Maize in India is grown in both kharif (80%) and rabi (20%) seasons. In kharif, it is sown in June-July till midAugust and harvested from mid-September. The arrivals extend from late September to February. The major states are Karnataka, Andhra Pradesh, Maharashtra, Madhya Pradesh and Uttar Pradesh. In rabi, maize is grown in Bihar and coastal region of Andhra Pradesh. The arrivals start from late March and extend upto June. Uniqueness: Maize is the second most important cereal crop of the world after wheat. Maize has three uses: as food, as feed for livestock and as raw material for industry. Industrial use involves production of starch, oil and protein, alcoholic beverages, food sweeteners and, more recently, fuel. World over, maize is primarily a feed crop even as it finds growing usage as a fuel (bio-ethanol), in value added foods and other industrial applications. In the past five years the Growth of consumption requirement is faster than the production growth mainly because of industrial use especially in production of bio- fuel. Major players USA, China and Brazil are the top three maize producing countries in the world. Prominent exporters of maize are USA, Argentina and Brazil while chief importers are Japan, EU, Malaysia, Taiwan, Indonesia etc. Maize cultivation and consumption is dominated by United States. The estimated production for US is about 43% of the world estimates. EU is a substantial consumer without contributing much towards production. Argentina is a producer with much lower consumption. Brazil, Mexico and India are other important producers and consumers. India ranks among the top 10 maize growing countries in the world and exports to Bangladesh, Nepal, Sri Lanka, the Middle East and South East Asian countries. The rising demand from the poultry industry, starch manufactures food processors and a profitable export opportunity has increased the area under cultivation, production and consumption. India mainly exports its surplus maize and its imports are very nominal. Andhra Pradesh is the major maize producing state contributing about 22% followed by Karnataka, Bihar, Madhya Pradesh and Rajasthan. But the major area under maize comes from Rajasthan followed by Karnataka, Madhya Pradesh and Uttar Pradesh. Major trading centers of maize
International Chicago, CBOT Budapest (Hungary), SAFEX (South African Future Exchange) China , Dalian commodity exchange Argentina, Rosario future exchange National NCDEX MCX

Value chain
Farmer Mand / Trader/Broker Exporters Processor

Poultry Farms

starch manufacturers

cattle feed Manufacturers

human consumption

Future Maize production and consumption has been rising consistently in India. The feed uses of maize are projected to increase by 10% annually. Starch companies are also in expansion mode with several existing players adding new capacity. Starch derivatives are used in textiles, pharmaceutical industries, confectionery etc. and all these industries are poised to grow substantially in future. Increased production of maize caters to export markets and offers distinct freight advantage to Indian exporters to Middle East and South East Asian countries. Maize usage is bound to grow as its consumption is linked to economic growth. Seasonality: Maize is cultivated in three seasons. Kharif: Sowing takes place after onset of the South West monsoon i.e., from June month and continue till August month. It is a short duration i.e., 120 days for one season so 8082% of the crop is cultivated. Rabi: Rabi sowing takes place in the months of October & November. Summer: cultivated under irrigated conditions. Market Influencing Factors Changes in production International prices of maize World production & Exports Domestic and Export demand (Demand for the maize in poultry and industrial uses) Sowing and Harvesting of all producing nations Temperature, rainfall and soil moisture in the cultivating areas Changes in the MSP Seasonal cycles: Price tends to be lower as harvesting progresses and produce starts coming into the market. At the time of sowing and before harvesting price tends to rise in view of tight supply situation. Carryover stocks, consumption and the import-export policy also affects the prices

Seasonality of maize in India

State & season AP (K) AP (R) Rajasthan (K) MP (K) Bihar (K) UP (K) Karnataka (K) Karnataka (R) May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr

Sowing Harvesting Maize prices for March 2012

Period 01/03/2012 02/03/2012 03/03/2012 04/03/2012 05/03/2012 06/03/2012 07/03/2012 08/03/2012 09/03/2012 10/03/2012 12/03/2012 13/03/2012 14/03/2012 15/03/2012 16/03/2012 17/03/2012 19/03/2012 20/03/2012 21/03/2012 22/03/2012 24/03/2012 26/03/2012 27/03/2012 28/03/2012 29/03/2012 30/03/2012 31/03/2012 02/04/2011 Spot price-Delhi (Rs/ Quintal) 1350 1350 1400 1350 1362.5 1365 1360 1375 1362.5 1350 1385 1360 1350 1385 1350 1350 1355 1370 1370 1360 1322.5 1400 1375 1400 1375 1400 1375 1400 Futures price (Rs/Quintal) 1151 1152 1152 1158 1150 1131 1139 1139 1134 1126 1127 1134 1130 1148 1157 1157 1157 1170

Monthly Maize prices

Period May 2011 June 2011 Jul 2011 Aug 2011 Sept 2011 Oct 2011 Nov 2011 Dec 2011 Jan 2012 Feb 2012 Mar 2012 Apr 2012
1600 1400 1200 1000 Series 1 800 600 400 200 0 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 Series 2 Series 3

Spot price-Delhi (Rs/ Quintal)

Futures price (Rs/Quintal)

Difference (basis)

1125.00 1025.00 1080.00 1110.00 1290.00 1245.00 1350.00 1375.00 1400.00

1175.0 1186.0 1300.5 1176.5 1148.0 1152.0

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