In the majority of 2018, wholesale prices for jowar (sorghum) and maize remained significantly below the government-mandated Minimum Support Price (MSP), mirroring the trend seen in other agricultural commodities. However, a noteworthy shift is now observed, as both jowar and maize are currently trading well above their MSP due to the ongoing drought impacting production. The scarcity of maize, the third most crucial cereal in India, has prompted calls for a relaxation of tariff duties on imports.
Maize, cultivated extensively across the country, holds the position of the third most important cereal after rice and wheat. With an estimated annual consumption of 220 lakh tonnes, poultry and the starch industry alone account for 70% of the usage. India also exports approximately 7 lakh tonnes of maize annually to countries like Bangladesh, the Philippines, Sri Lanka, and Nepal.
Although primarily a Kharif crop in several states, including Karnataka, Madhya Pradesh, Andhra Pradesh, Maharashtra, and Telangana, Bihar and Uttar Pradesh growers also cultivate maize during the rabi season. The drought has impacted the rabi season, resulting in a decline in maize sowing area in Maharashtra and lower realizations in wholesale markets. Industry estimates indicate an 8-10% reduction in maize availability nationwide.
Despite the challenges, wholesale prices of maize have experienced a positive upswing, currently averaging Rs 1,723.47 per quintal in Maharashtra, surpassing the mandated MSP of Rs 1,700. This marks the first time in the last year that prices have crossed the MSP. The poultry industry, however, anticipates challenges in managing increased production costs.
Concerns over the impact of drought extend to jowar as well. Maharashtra, a significant producer of jowar, has witnessed nearly a 50% dip in sowing area. With Maharashtra contributing around 30% to national jowar production, the decrease in sowing has led to a rise in wholesale prices, now standing at Rs 2987.05 per quintal—Rs 500 per quintal above the mandated MSP. The surge in prices is attributed to the drought affecting the rabi crop.
Apart from being a staple, both jowar and maize serve as crucial sources of green fodder for animals, providing an additional income source for farmers. The current scenario presents a double loss for farmers facing not only crop loss due to drought but also scarcity of fodder. As prices surge, farmers find themselves in a challenging situation, grappling with the consequences of weather-related adversities.