Maize prices remain high despite duty free regime

New Delhi, Feb 5 (UNI) Despite a duty free regime announced by the Government, the prices of maize are likely to remain high because of increased demand by poultry farms amid lower supplies.

All will depend on the Rabi crop arrival in the markets and how prices behave then.

In its efforts to keep the prices of essential commodities in check, the government had earlier exempted customs duty on wheat and pulses and had reduced customs duty on edible oils.

Keeping in view the high price of maize, it has now decided to allow imports of maize at Nil customs duty till December 2007 and a notification in this regard was issued on January 25, 2007.

The maize prices in the mid week did slide down by about two per cent to Rs 7,200-7,300 per (Million Tonne) MT levels at the market yard, but by end of the week the prices were at Rs 7,800-7,900 per MT levels at the market yard, thereby registering an increase of eight per cent over mid week.

The delivered prices by the end of the week were up at Rs 10,000 per MT.

The delivery prices in Gujarat, by the end of the week had reached Rs 11,000 per Mt levels, ringing alarm bells. In Tamil Nadu, the hub for poultry, the delivery prices touched Rs 9,300 per MT.

In the midweek the future prices of maize for February, March, April, May were at Rs 7,820, Rs 7,80, Rs 8,140 and Rs 8,235 respectively. By the end of the week, the prices were up to Rs 7,930, Rs 8,100, Rs 8,250 and Rs 8,380 per MT respectively.

Spot prices of maize at Nizamabad which is the benchmark market were Rs 7,150 per MT mid week and were up to Rs 7,400 per MT by the end of the week, gaining 3.4 per cent in three days.

UNI