Posts Tagged ‘maize production’

CORN………. “The Un-discovered Legend” Part 1

Hello Friends here we come up with another write up on “Commodity Corner Series”.

Here we would touch upon the importance of Maize crop in Indian commodity market and its relevance in the context of Indian Scenario 🙂

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CORN………. “The Un-discovered Legend”

Maize, also known as corn, is a cereal which is an important crop after rice and wheat.

The domestication of maize has been dated back as far back as 12,000 years ago. Today, maize is widely cultivated throughout the world, in a greater size with top producing countries like United States, China, Brazil, France, Indonesia, India and South Africa.

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Indian Scenario:

Andhra Pradesh is now the largest producer contributing around 21% of annual maize production.

India ‘s area harvested of maize and yield have risen by mainly on account of rising production of single cross hybrids seeds, its demand and increasing acceptability among farmers.

In India, its cultivation extends from the hot arid plains of Rajasthan and Gujarat to the wet hills of Assam and Bengal.

There are three distinct seasons for the cultivation of maize:

the main season is kharif;

next is Rabi in Peninsular India and Bihar and

in spring in northern India.

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Normally, higher yields have been recorded in the rabi and spring crops.

Over 85 per cent of the maize acreage is sown under rain-fed conditions during the monsoon when over 80 per cent of the annual rainfall is received.

However, this year due to the erratic monsoon production has been affected, as a result of which maize prices have been in uptrend since the withdrawal of monsoon from the country.

During 2008-9, Indian exported 3 million tonnes of maize and 12,000 tonnes of maize seed worth of Rs 2,400 crore and Rs 2,000 crore respectively.

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Stay Tuned for more on this.

In next blog we would touch upon the issues like Potential source of demand for Maize crop, Industrial Demand and PVO (Price-volume-open Interest) of MAize crops.

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Lower Output of Rice will Shift More Demand for Wheat

Hello Friends, just an extension of our previous blog “wheat may move in range with up bias”.

Lower Output of Rice will Shift More Demand for Wheat

Lower output of rice and maize will shift more demand for wheat

Despite record wheat production in 2007-08, wheat consumption in 2008/09 is estimated to have declined to around 70.2 million tonnes from 76.2 million tonnes in the previous year due to high prices.

Domestic prices have shot up after a significant hike in the minimum support price discouraging consumption.

Highly subsidized rice distribution program of some state government also tempered wheat demand.

Domestic wheat consumption in 2009-10 is expected to rise by 70.2 million tonnes to 76.88 million tonnes ; likely decline in rice and maize production may lift wheat demand.

Export ban may continue, import at this juncture is viable

With bumper production and significant built up of stock wheat export was earlier estimated to be 2 million tonnes in 2009-10.

Even government relaxing ban placed in February, 2007 allowed two million tonnes of government-to government export.

But weak monsoon and poor sowing prospects of paddy forced
government to scrap government-to-government export allowed earlier.

It is likely that government would continue with its stance on export of wheat at least till the end of current marketing year.

After importing wheat in 2006-07 (6.2 million tonnes) and 2007-08 (1.8 million tonnes), India did not import any wheat in 2008/09 as the domestic supply situation improved considerably.

As domestic supply situation is comfortable, import is also not likely in the current season.

However imports are currently viable as international prices of wheat (equivalent to domestic mill quality) are lower.

Ukraine origin wheat is trading $ 180-200 per tonne and

Australian wheat is at $ 210-230 per tonne, while wheat prices on Southern India is at around $275-300 per tonne.

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In Next Blog, We would touch upon the aspects like Domestic and International price trend of wheat. demand and supply scenario in coming months, price trend and on Export Ban.

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