With overproduction and weak demand, the global corn market is likely to depress.

World agencies and analysts say maize (maize) prices are likely to be under pressure in global markets this year, as stocks rise due to oversupply and weak demand exacerbating the situation. Prices are already at three-year lows, which could benefit Indian industries such as poultry and starch producers, which are weighing imports amid rising domestic corn prices.

Chicago Board of Trade (CBOT) Corn March contracts are currently trading at $4.45 per bushel (₹14,575/ton), the lowest price in three years. The weighted average price in the domestic market is over ₹2,150 and the modal price in many parts of the country is over ₹2,200. This is against the Minimum Support Price (MSP) of ₹ 2,090. As corn was used for ethanol production in India after a deficient monsoon affected sugarcane production, prices rose sharply above the MSP this year. This led the poultry industry and the starch industry in particular to request duty-free imports of corn.

However, their demand is unlikely to be heeded by the Center as five lakh tonnes of maize can be imported at 15 per cent concessional duty under the tariff quota system. A 50 percent duty is usually imposed on imports, a trade analyst said.

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