Low demand for Indian maize in the global market due to rising prices
Pakistan has benefited from India's high prices in the global maize market, particularly in South East Asia. Domestic maize prices in India are higher than global market prices due to a decline in coarse grain production till June this crop year due to demand for maize in the poultry and starch sectors apart from ethanol production. Therefore, there is less demand for Indian maize in the world market. As compared to that, the maize of Pakistan is available at a low price, so the maize traders informed that there is a huge demand for that maize.
Why is the price of maize high in the world market?
According to the Ministry of Agriculture and Farmers Welfare, maize production during the Kharif and Rabi seasons is estimated at 32.47 million tonnes. which was 35.36 million tonnes in the last crop year. Seasonal production of this crop is expected to be low during Kharif and Rabi seasons. The Center has banned the diversion of sugarcane for ethanol production. Due to this, the demand for maize has increased. Apart from this, the demand for maize has also increased from the poultry and starch sectors. Indian maize is excluded from the world market due to high domestic prices.
Maize of Pakistan is cheaper than that of India
According to the information received, the price of maize in Pakistan is currently Rs 2,150 per quintal. This price is around 260 dollars per ton. In the world market, Indian maize is priced at $300 per tonne, while Pakistan's maize is priced at $50-240 per tonne. At the same time, lower production of coarse grains used in ethanol has increased the use of corn for ethanol. The average price of maize in the domestic market is currently Rs 2,132 per quintal, as against Rs 2,039 per quintal a year ago.
Pakistan's purchase of maize from 'these' countries
According to the US Department of Agriculture, the crop in Pakistan is good due to low demand for fodder. In such a situation, Pakistan's maize export is likely to exceed 15 lakh tonnes. Vietnam, Malaysia and Sri Lanka have emerged as the top buyers. Quality is a major issue for Pakistan maize buyers. Buyers are buying because of its low price.
