Source: Business Standard
This year, the minimum support price (MSP) was set at Rs.1,310 a quintal, with the aim of improving output, especially in states like Punjab, Haryana and western Uttar Pradesh. However, this has also had its impact on price pressures, as the MSP is 11.5 per cent higher than last year.
Though a record kharif crop is expected, since maize is grown mainly in states hit by heavy rains, there are doubts over the quality of arrivals in the market. There had been a price spiral in 2010-11 due to low global production, and such a spiral is unlikely to recur this year as globally output is set to be higher than last year’s.
IPM data till week ending October 26. The Indicus Price Monitor (IPM), a product of Indicus Analytics Pvt Ltd, tracks real-time wholesale prices for 60 agricultural products from more than 3,000 mandis across the country. Due to differences in methodology, the actual levels of the IPM differ from the corresponding Wholesale Price Index (WPI). However, broad trends are in sync. However, domestic price pressures will stay due to higher demand, from consumers and industry where maize forms an input.