Maize grain is one of the most important crops in Pakistan, and its price is also a major factor in the economy of Pakistan. The price of maize is influencedby several factors, like weather, demand for maize, and availability of other crops. In this post, we’ll discuss some factors that affect price and how to analyzethem according to current market conditions.
Versatility, Cultivation, and Economic Value of Maize
Maize is also called corn or makai (local language name). It’s a widely cultivated crop after wheat and rice. Maize is a versatile crop that is used for multiple purposes,including human food, dairy animal feed, and industrial uses. A tractor is used in the cultivation of Maize. This year, maize was exported at PKR 4,050-4500/maund, which is very close to wheat. However, prices decrease after some days.
Global Significance of Maize Grain
Maize grain is one of the world’s important cereal crops, which is an important crop and plays an important role in global security. It plays an important role in agricultural economies, industrial production, food security, and nutrition. It is a cash crop in both developing and developed countries. Nowadays, crop is ta number 3rd position that is grown and consumed all over the world. Maize originated in central America thousands of years ago and spread through export, migration, and exploration. With the passage of time, researchers and farmers have developed many maize varieties vary according to different soil conditions and different climates.
Types, Growing Conditions, and High-Yield Potential of Maize
It has different types, including dent corn, flint corn, popcorn, sweet corn, and some other varieties. Maize is grown in tropical, sub-tropical, and hot regions- making it a highly valuable crop.Maize grain produces more grain per hectare,especially when proper agronomic practices, good soil management, and improved seeds are used. It has become a perfect choice forthe common man that fulfills the demand of local and international orders. The maize plant needs proper sunlight, nutrient-rich soil, and moisture for optimal growth.
Maize as a Global Staple Food and Its Nutritional Importance
Maize grain is an important food, especially in regions of Latin America and Africa. Maize is used in different forms like boiled kernels, tortillas, flour, dishes, and primary source energy for millions.It has essential carbohydrates & contributes high calories. Maize flour is also called cornmeal that is a humble feed but has a rich history.
Why MAIZE
Maize provides 30% of calories to more than 5 billion people in 93 developing countries. Maize is consumed indirectly in the form of milk, cheese items, corn syrup, and beef. It will feed more than 900 million people and earn USD 2 / day.
Higher demand for maize, lower yields expected
As the population is increasing so more people have consumed maize in different forms, and it has become the preferred choice of the world. The world’s population are increased, and people are adding meat, dairy product, and poultry into their dairy diet, so demand is increasing with the passage of time.
As per study, it is said that corn demand will double by 2050 and it will become the world’s largest consumed crop. Consumption will increase, and yields are expected to decline- increase in its global prices,which creates problem for those people who depend on maize. Due to changes in climate in Asian regions (Africa and Latin America), farmers must check the plant for its disease. Farmers must work hard to produce a healthy crop. It means till 2050, import of maize grain will increase by 24% and the annual cost will be USD 30 billion. China has dedicated its agricultural land to maize grain production. Many countries import maize from other countries.
In 2050, the consumption will increase by 33-53 kg per person annually. For industrialized countries, maize shortage and decline yield means that prices are also increased. It mattersfor farmers because of the poverty rate; if it is high, then it will not be affordable.
A valuable feed grain
Maize silage or grain both are known as animal feed for 30 years. Its economic features, and positive competitive items also help prices to maintain it like dairy and meat products.
Biofuels: potential opportunities
Prices for wheat, maize, soybeans, and rice are also increased. There are different organizations working all over the world, providing potential opportunities like the growing biofuel market offers to small, medium, and large-scale farmers. These organizations are answerable to the United Nations Organization (UNO).
Prices of Maize grainin Pakistan& why it fluctuates
- As per recent research, its price is PKR 2600 – PKR 3200 per 40 kg.
- Regional variation in supply and demand
- Quality of maize — grain quality, moisture content, kernel type, etc
- Use-case or end demand
- Broader economic pressures
- Input costs for farmers
Muhammad Arif CEO, MBA in Finance and Marketing from South Korea University. 15 years plus experience in Agriculture Waste and Animal Feed Production, Facility Management & Export