New Delhi/Indore: Maize prices in Bihar's Purnea and wheat prices in Indore in Madhya Pradesh fell on Wednesday due to weak demand from bulk buyers, traders said.
Maize prices fell despite a decline in supply, as the bulk demand for the poor-quality crop was weak, according to Ghanshyam Yadav, a Purnea-based trader.
Arrivals were pegged lower at 10,500 bags (1 bag = 65 kg), compared with 15,000 bags on the previous day, traders said. "Around 40% of the crop that is coming to the market is damaged and discoloured or has fungus, which weighs on demand," Yadav said.
Recent rains in Bihar have led to the deterioration of crop quality, said traders. Since June 1, Bihar has received 46% above normal rainfall at 481.7 mm.
Wheat prices in Indore also fell due to weak demand. Arrivals were pegged higher at 2,500 bags (1 bag = 100 kg), compared to 2,000 bags on the previous day.
Demand for wheat has taken a hit since the government announced it would distribute 5 kg of extra foodgrain free of cost, said NK Agarwal, a local trader.
On June 7, the central government extended free foodgrain drive for poor under the Pradhan Mantri Garib Kalyan Anna Yojana.
