SAHIWAL: The maize crop rates have seen a significant decline from Rs2,200-2,400 to Rs1,700-1,800 per 40 kg over the past month. This stands in stark contrast to the rates of the previous year, which ranged between Rs2,800-3,000 in the open market.

Stakeholders allege the downward trend stems from manipulation by maize mill owners, who are reportedly opting not to buy crops from “investors” but directly from growers. Also, the government’s policy of halting maize exports is seen as a contributing factor.

Sources told Dawn that due to challenges, such as harsh weather in December and January, increased electricity, fertilizer and pesticide rates, the input cost of maize crops has surged by 30 percent. The continuous expansion of maize cultivated areas, however, has created a balance between supply and actual demand in the open market. This balance has given mill owners a chance to decrease rates for growers.

Data reflects a consistent growth in maize production area and yield. Reports say that the maize production area has expanded to 1.650 million hectares, resulting in an average annual production of 10.94 million tons. Over the years, maize production in Pakistan has soared from 0.38 million tons during 1947-50 to 3.037 million tons in 2007.

The utilization of maize grain in poultry feed is on the rise in Punjab, increasing from 23% in 2001 to 55% in 2007. Demand for maize in animal fodder, poultry feed, and the wet milling industry is growing at a faster pace than anticipated. However, a significant majority (99%) of total maize production hails from two major provinces, with Khyber Pakhtunkhwa accounting for 51% of the total area and 31% of total production, and Punjab contributing 48% of the area and 69% of total maize grain production.

Muhammad Usman, a grower from village 90/6-R, said that maize farmers are not in a position to determine rates. Approximately 65-70% of the maize crop is bought by a UK-based multinational group in Pakistan.

Estimates suggest that almost 40-50% of Pakistan’s maize is consumed on farms, 15-20% is marketed locally, and 40% is sold in the organized wholesale market. The current utilization breakdown indicates that 0.607, 0.500, 0.300, 0.75, and 0.75 metric tons of maize are used in direct human consumption, the poultry feed industry, the wet milling industry, seeds, and miscellaneous purposes, respectively.

Chaudhry Rizwan, provincial president of Pakistan Kissan Ittehad, urged the government to introduce a “support price” for maize in the market as production is increasing.

He said this year production cost on one acre had gone from Rs124,000-134,000 to 140,000-145,000 because of an increase in DAP and Urea fertilizers, electricity and seed prices. He said if growers use local hybrid seed, the cost is low but using multinational seed means to increase seed cost five times higher.

He demanded that the government introduce support price for the crop to break the “nexus” of mill owners and “investors.

Shahbaz Akhtar, director of agriculture, told Dawn rates are improving. He said the department has no regulatory mechanism or any kind of authority to fix the rates of both white and yellow maize.

Published in Dawn, February 22nd, 2024