India corn prices up on rising demand, low supply

India's corn prices have increased sharply during the past one month due to rising demand from the poultry industry and a lack of supply.

The wholesale corn prices in Delhi have increased 17 percent from Rs9,400 to Rs11,000 per tonne in the past two months, according to the Poultry Federation of India (PFI).

Poultry feed prices, which is a mixture of corn and soymeal, have also increased 15 percent in the past two months from Rs16,500 per tonne to Rs19,000 per tonne.

The price increases are because of lower supplies from key growing states such as Uttar Pradesh and Karnataka, said Rick Thapar, Treasurer of PFI.

But an official with the Directorate of Maize Research (DMR), said the increase is temporary, as farmers have sown the less water-intensive corn as an alternate crop due to deficient rainfall in many parts of India. As a result, supplies would improve over the next few months, the official said.