Maize Business Plan 606m1g

MAIZE BUSINESS PLAN

Prepared By- Manish Chaurasiya (31081), Pritam Singh (31092), S Sarath (31100), Sandeep S Ramteke (31102), Saurabh Paul (31105), Vaibhav Rai (31113)

INTRODUCTION Maize is the third largest planted crop after wheat and rice. It is mostly used and traded as a leading feed crop but is also an important food staple. In addition to food and feed, maize has wide range of industrial applications as well; from food processing to manufacturing of ethanol. Corn grown is majorly of three types · Grain or field corn, · Sweet corn used mainly as food · Popcorn. There are four types of Grain corn: (1) Dent corn has a pronounced depression or dent at the crown of the kernels. (2) Flint corn has the hard starch layer entirely surrounding the outer part of the kernel. (3) Flour, or soft, corn contains almost entirely soft starch, with only a very thin layer of hard starch. (4) Waxy corn has a wax-like endosperm Both Dent and Flint varieties are used for industrial purposes. Popcorn has small pointed and rounded kernels with very hard endosperm which on exposure to dry heat popped by the expulsion of the contained moisture and forming a white starchy mass many times the size of the original kernel. Sweet corn is distinguished by kernels containing a high percentage of sugar in the milk stage and therefore suitable for table use. Indian maize has white, red, purple, brown or multicolored kernels and is characteristically dent corn. The dent corn is useful for starch processing by wet milling method. The area and production details of this cereal crop across the globe and India is given as under: Global Maize Production The total area under maize cultivation in the world is 139 million hectares with a production of 598 million MT (mMT). USA is the world's largest producer and exporter of maize with an out put of 240 mMT from an area of 29 million hectares. Other major producers are China (125 mMT), European Union (39 mMT), Brazil (37 mMT), Mexico (19 mMT), Argentina (14 mMT) and India (11 mMT). Among all cereals, maize occupies the fifth largest in area, fourth largest in output and third largest in yield. Over the past two decades, global maize production has increased by nearly 50 percent, or 1.8 percent annual compound growth rate. Most of the increase in world maize production during the past decade can be attributed to a

rapid expansion in Asia. Asian maize production grew by nearly 35 percent during the past decade, ing for almost 30 percent of the global increase.

India Maize Production India is the tenth largest producer with a production of 11.10 mMT from an area of 6.6 million ha. The average yield in India is 1.77 MT/ha which is very low as against 7 MT/ha in temperate areas of developed economies and 3.8 MT/ha of global average. Maize is cultivated in almost all states in the country. Andhra Pradesh is the leading producer in India followed by Karnataka, Bihar, Maharashtra, Tamilnadu, Rajasthan, Madhya Pradesh and Gujarat in the year 2009-10. The crop is grown both in Kharif and Rabi seasons in India with a share of 85 per cent and 15 per cent, respectively. Since the maize is rain dependent, it is mainly grown during kharif season. Maize Area, Production and Yield in India have seen a phenomenal growth over the last five decades and India has emerged from being a net importer to levels of self sufficiency. Statewise Production in 2009-10 (‘000 tonnes)

Price Analyses of last five years If we examine the price trend of maize in Indian market, prices will be on their peak during the months of July-August. From August onwards prices start declining owing to start of kharif season. Price of maize mainly depends upon supply demand structure. One important thing that is visible from the trends is that from the 3 years the price fluctuations within a year is showing same trend. Government announces MSP( minimum price of maize every year and the prices are showing upward trend, this has lead to many farmer switching from other farming like

ground nut , soya to maize production. The continuous demand for maize in poultry industry and lesser predicted area in the kharif helped the prices to rule around higher side.