MAIZE-FEED / INDUSTRIAL GRADE

GENERAL CHARACTERISTICS OF MAIZE

Maize (Corn), originating from the Americas, ranks third in global cereal grain importance, following wheat and rice. It serves as a vital source of nutrition for both humans (33.3%) and animals (66.6%). Maize functions as a fundamental raw material for various products including starch, oil, protein, alcoholic beverages, food sweeteners, and recently, fuel. Different varieties such as sweet corn and popcorn cater to specific culinary preferences, while dent, starchy, floury, and flint maize are also extensively utilized, with flint maize additionally serving as animal feed. Immature corn on the cob, commonly boiled or roasted, is widely consumed.

GLOBAL SCENARIO OF MAIZE PRODUCTION

In 2003, global corn production reached 614.3 million tons, with expectations for 2004 projecting an increase to 642.6 million tons. Major producers such as the United States, China, EU-25, Brazil, Mexico, Argentina, and India collectively contribute approximately 80% of the world’s corn production. Leading consumers include China and the USA, with rising demand attributed primarily to the meat and starch sectors, particularly within the poultry industry. Key importers include Japan, Korea, Taiwan, Mexico, Egypt, Malaysia, the EU, and Colombia, while the USA, Argentina, and Brazil dominate as major exporters, with minimal contributions from other nations such as China, South Africa, and Ukraine.

INDIAN MAIZE SCENARIO

India’s maize production fluctuates between 10-14 million tons, with the kharif season accounting for 80-90% of production. Major contributing states include Karnataka, Andhra Pradesh, Bihar, Punjab, Uttar Pradesh, and Madhya Pradesh. Approximately 6.5 million tons, or roughly 50% of total production, are allocated for poultry feed, while another 1 million tons are used in the starch industry. Traditionally a maize importer, India permits fixed quantities to be imported at different tariff rates, although in 2003-04, the country unexpectedly exported around 3-5 lakh tons of maize. Rising household incomes have led to shifts in consumption patterns, favoring other cereals like rice and wheat, while increased meat consumption, particularly poultry, has driven demand for maize as feed.

FACTORS AFFECTING MAIZE PRICES

Weather conditions significantly impact crop production, with temperature, rainfall, and soil moisture playing crucial roles. Natural disasters such as typhoons, floods, droughts, and earthquakes can also disrupt crops, closely monitored by markets. Changes in government-set minimum support prices (MSP) exert considerable influence on commodity prices. The availability of cheaper substitute products may weaken demand, especially during periods of high prices. Seasonal cycles in agriculture, particularly in short-duration annual crops, result in price fluctuations, typically lower during harvesting periods and higher during sowing and pre-harvest stages. Technological advancements leading to increased productivity may also affect supply and subsequently influence prices.