Telangana Maize Prices Crash Below MSP, Farmers Demand Procurement by Amit Gupta Kedia Advisory
Maize prices in Telangana have dropped sharply to Rs.1,600–1,800 per quintal, significantly below the MSP of Rs.2,400, causing distress among farmers. The decline is attributed to higher global production, especially in the US and Brazil, which has increased domestic supply. Farmers are demanding government intervention through procurement centres and removal of purchase limits. The State Government has urged the Centre to include maize under the Price Support Scheme and provide financial assistance. Despite short-term pressure from rising arrivals, steady demand from feed, poultry, and ethanol sectors is expected to support prices, which may trade between Rs.1,850 and Rs.2,200 in April.
Key Highlights
* Maize prices fall Rs.600–800 below MSP, triggering farmer distress
* Increased global production drives domestic price weakness
* Telangana farmers demand procurement centres and higher limits
* State seeks Rs.4,000 crore aid under Price Support Scheme
* Demand from feed and ethanol sectors supports price outlook
Maize prices in Telangana have witnessed a sharp decline, falling to Rs.1,600–1,800 per quintal, well below the Minimum Support Price (MSP) of Rs.2,400. This steep drop of nearly one-third has created significant distress among farmers, who are now facing the risk of heavy financial losses. The price weakness has emerged primarily due to higher domestic arrivals coupled with bearish global cues.
Globally, maize prices have softened amid expectations of large production in major exporting countries such as the US and Brazil. This has led to increased supply availability in the domestic market, putting downward pressure on prices. Additionally, export challenges to West Asia have further added to local supply, aggravating the price decline. Farmers in key producing regions like Khammam have staged protests, urging the government to intervene by setting up procurement centres and ensuring purchases at MSP.
The Telangana government has taken up the issue with the Centre, requesting inclusion of maize under the Price Support Scheme and financial assistance of Rs.4,000 crore to procure at least 50% of the State’s output. With production rising due to higher acreage and favourable conditions, supply pressures remain elevated.
However, demand fundamentals remain supportive. Consumption from poultry, livestock, starch, and ethanol industries continues to grow steadily. Buyers are adopting cautious procurement strategies, which may help stabilise prices in the near term. Market estimates suggest maize prices could recover slightly and trade in the range of Rs.1,850–2,200 per quintal during April.
Finally, while short-term pressure persists due to excess supply, strong domestic demand and potential government intervention could help stabilise maize prices and limit further downside for farmers.
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