Price volatility of maize in India: Do international markets affect?

Maize is emerging as a major crop next to rice and wheat in India because of its increasing use as feed and fodder for livestock and poultry. The present study examines the impact of international maize prices on its domestic prices in India. To understand this, we examined the patterns, trends and volatility of domestic and international prices of maize. We find that the international prices are more volatile than domestic prices. The study also shows that the price instability in maize is higher in both the domestic and international markets. Due to trade restrictions in India, some price transmission was also observed. By taking into account the emerging importance of the crop, such measures remain inevitable as in the present context, lack of such measures may lead to higher price volatility