Maize Prices Continue to Rise: Weak Arrivals, Strong Ethanol Demand and Rainfall Concerns Keep Market Bullish

Key Highlights

• Maize prices remain strong due to weak arrivals.

• Heavy rains have raised crop concerns in key states.

• Government procurement is up 18.61% year-on-year.

• Ethanol and poultry demand continues to support prices.

• Rajasthan and Madhya Pradesh mandis report firm rates.

Maize prices in India continue to move higher as weak arrivals, strong demand from the ethanol and poultry industries, and weather-related concerns support the market. Traders say selling pressure remains low while buyers are actively purchasing maize, helping prices stay firm across several states.

Experts believe the market is likely to remain positive in the near term if crop damage from rains increases and demand continues to stay strong.

Why Are Maize Prices Rising?

The maize market is currently witnessing a bullish trend due to several factors:

• Low arrivals in domestic markets

• Strong demand from the ethanol and poultry sectors

• Weather-related concerns in major producing states

• Growing government procurement

• Export demand supporting market sentiment

According to market experts, the key support level for maize at Gulab Bagh Mandi is around ₹2,200 per quintal, while the next price target is ₹2,400 per quintal under the current market conditions.

Heavy Rains Raise Crop Concerns in Uttar Pradesh

Continuous rainfall in Uttar Pradesh has increased concerns about crop damage. Many areas of the state have received around 110 to 150 mm of rainfall, affecting crops spread across nearly 18,000 hectares.

The excessive rainfall has raised fears of lower production and possible supply disruptions in the coming months, adding further strength to maize prices.

Bihar and Maharashtra Also Face Weather Challenges

Weather concerns are not limited to Uttar Pradesh. Bihar and Maharashtra have also received around 10 to 20 mm of rainfall, leading to higher humidity levels.

Traders believe these conditions could affect Kharif crop preparations and overall crop health. Market participants are closely monitoring the weather as it could influence future production.

Government Procurement Continues to Support Prices

Government procurement has emerged as another major factor supporting the maize market.

So far, government agencies have procured around 15.71 lakh metric tonnes of maize, which is 18.61% higher than last year. Increased procurement has helped farmers receive better prices while maintaining a positive market trend.

The Minimum Support Price (MSP) for maize has also been increased:

However, maize prices continue to vary across different states. In some markets, prices remain close to or below the MSP, while others are trading above it.

Farmers have repeatedly demanded that the government begin MSP procurement in all major maize-producing states. At present, procurement through government agencies is active only in selected states, while several producing states are still waiting for procurement operations to begin.

Rajasthan Maize Prices Stay Strong

Limited arrivals have kept maize prices firm across major markets in Rajasthan.

Traders expect prices in these markets to remain strong as long as arrivals stay limited.

Madhya Pradesh Markets Also Remain Firm

Buyer activity continues to remain strong across key markets in Madhya Pradesh.

The steady buying interest is helping prices remain stable across the state.

Ethanol Industry Demand Adds Fresh Support

The growing ethanol industry is becoming an important driver of maize demand.

In Punjab, demand from ethanol producers is steadily increasing and is expected to reach 1.8 to 2.5 million tonnes. This additional consumption is likely to support maize prices further in the coming months.

Along with ethanol, steady demand from the poultry industry is also contributing to the strong market sentiment.

Global Market Trend

The international maize market is also providing support.

According to the US Department of Agriculture (USDA), global maize production for the 2025-26 season is estimated at around 1.25 billion tonnes, while global consumption is projected at approximately 1.23 billion tonnes.

Although production is expected to remain slightly higher than consumption, global markets continue to closely monitor weather conditions and export demand in major producing countries.

Maize Price Outlook

The outlook for the Indian maize market remains positive in the short term.

Weak arrivals, rising demand from the ethanol and poultry sectors, expanding government procurement, and weather-related uncertainties are expected to keep prices supported. If heavy rains continue to affect production in key maize-growing states and demand remains strong, maize prices could witness further gains in the coming weeks.

However, farmers and traders should continue tracking the progress of the monsoon, government procurement activities, and global market developments, as these factors will play an important role in determining future price movements.

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CMV360 Says

India's maize market is expected to remain firm due to low arrivals, rising demand from the ethanol and poultry sectors, higher government procurement, and weather-related concerns in major producing states. Strong prices across key mandis reflect positive market sentiment. However, the progress of the monsoon, crop conditions, and global maize trends will remain crucial in deciding whether prices continue to rise or stabilize in the coming weeks.