India corn prices up 1.6 percent on growing demand

Corn prices across India increased 1.6 percent last week averaging at Rs8,230 per tonne in the wholesale market, due to rising demand, according to the US Grains Council (USGC).

The average prices may be less than the Minimum Support Prices (MSP) of Rs8,400 per tonne, but prices in several markets were much higher than the MSP, said the USGC India Representative Amit Sachdev.

Growing domestic and overseas demand have helped boost corn prices, said Sachdev.

Corn prices were up 13.3-percent higher from last year, and up 8.47 percent from the first week of January 2009, according to Sachdev.

The average corn price in January in the wholesale market grew 12.75 percent on-year, and was up 2 percent from December 2008.

However, corn futures fell 3 percent for the February contract and 5 percent for April delivery, while moving up 1.2 percent and 1.6 percent for the spot markets of Nizamabad and Karimnagar, respectively.

In addition, CBOT corn prices for March contract fell 3 percent to US$149.20, while May delivery declined 2.79 percent to US$153.61.