There is talk that a deal is going to happen between India and America very soon. Along with this deal, there is also speculation that India may reduce the tariff on American maize imports during the trade agreement, which means that the import of American maize into India will increase. Indian farmers are worried about just this thing.
Farmers fear that leave alone profit, they will not be able to recover even the cost of their maize. Due to this concern, the price of maize has fallen below the MSP i.e. maize is being sold below Rs 600.
Farmers selling maize at loss
According to reports, if the trade agreement is reached and American maize starts arriving in the Indian market, prices may fall and farmers may have to suffer huge losses. Farmers who were once shown the dream of becoming ‘energy providers’ through maize are now forced to sell maize at a loss. It is noteworthy that at the global level America The world produces about 35% of maize, while India’s share is about 3%.
Maize prices below MSP
At present the MSP of maize is Rs 2,400 per quintal, but Agriculture Ministry data shows that between October 15 and 23, the average market price dropped to Rs 1,823.53. According to government estimates, farmers spend Rs 1,508 per quintal on maize production under the A2+FL formula.
When calculated according to the C2 formula of the Swaminathan Commission, this expense increases to Rs 1,952 per quintal. This means that many farmers are selling their crops at a price lower than their production cost.
Madhya Pradesh most affected
Maize prices are lowest in Madhya Pradesh. There the farmers got an average price of Rs 1552.49 per quintal. In some markets the prices have fallen even further. In Khategaon mandi of Dewas district, the price was recorded at Rs 1,196.5 per quintal, while in Nasrullaganj mandi of Sehore the price was only Rs 1121, which is barely half of the MSP.
Madhya Pradesh’s contribution to India’s total maize production is more than 12 percent. In Rajasthan also, the average price has been Rs 1695.54 per quintal, which is about Rs 700 less than the MSP. The average price last week in Karnataka, India’s top maize producing state, was Rs 2,085.85 per quintal, while in Maharashtra it was Rs 1,763.85 per quintal.
Livelihood threatened by imports
According to India Today, agricultural economist Devinder Sharma warned that maize import could cause huge losses for Indian farmers. Sharma said that importing food items is like importing unemployment. The government should keep this in mind. He further said that cheap imports may cause domestic prices to fall and maize cultivation may become unprofitable for many farmers.
From development to concern
The number of farmers growing maize has increased in the last few years. The area under cultivation increased from 98.92 lakh hectares in 2020-21 to 120.17 lakh hectares in 2024-25. During this period, production has also increased from 316.45 lakh metric tonnes to 422.81 lakh metric tonnes.
However, if imports continue, experts warn that prices could fall further, discouraging farmers from growing the crop. India could then become dependent on imported maize, just as it already is for pulses and oilseeds.
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