India Is Mulling Curbs on the Corn Export
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Corn is in great demand in the form of starch and the poultry sector, but these days the prices of Corn reach Rs 2,150 per quintal in India. It is speculated that these prices may increase further. So, the Indian Government is considering curbs on the export of Corn, including a ban, with its prices ruling above Rs 2,150 a quintal.
Due to the rising prices of Corn and heavy demand, the Ministry of Food Processing Industries wrote a letter to the Ministry of Commerce that the Corn price would increase and the supply in the manufacturing companies would come to a standstill. Along with this, there has also been a demand to reduce or ban the export of Corn to meet the domestic supply of Corn.
Data from Agmart, which comes under the Ministry of Agriculture and Farmers Welfare, shows that from December 1 to December 8, the weighted average price of Corn has been recorded at Rs 2,173 per quintal, which is much higher than the minimum support price of Corn at Rs 1,962 per quintal. Taking last year’s figures, the price of Corn was recorded at Rs 1,654 per quintal during this period.
There is a considerable consumption of Corn in the country. Vangili Subrahmanyam, the President of Tamil Nadu Egg Poultry Farmers Marketing Society, says that we have to buy Corn at the rate of Rs 2400 per quintal in Namakkal. On the one hand, the prices are high; on the other hand, the demand in the international market is also skyrocketing. There is a problem in the domestic supply here, but on the other hand, a sizeable consignment of Corn is being exported at the major ports of the country.
As per the USDA, Indian domestic Corn consumption is forecast at 30 million tons, while production and harvest area are projected at 31.5 million tons and 9.8 million hectares, respectively, for MY2022/2023. The production for MY2021/2022 was 33 million tons with a yield of 3.3 MT/HA.
Massive Demand for Indian Corn
Now amidst the problems in the domestic supply of Corn, the demand for Indian Corn is increasing abroad. In this case, the President of the Agri Commodities Exporters Association, M Madan Prakash, told media reports that demand for Corn is also coming from Vietnam to Sri Lanka, Indonesia, and Taiwan. We are being asked for its price. There is speculation that the foreign demand for Corn may increase after the new year because the preparations for the new year are going on, due to which the stock of Corn has been kept on hold. It also takes 9 to 10 days to export Corn to many countries.
According to the AgFlow data, India exported 39,130 tons of Corn to Bangladesh in 2022, followed by Vietnam (30,800 tons). In terms of import, the country purchased 1.2 million tons of Corn from Brazil, followed by Ukraine (30,000 tons) and Argentina (25,000 tons) in 2022.
Mr.Mukesh Singh, Director of Mubala Agro Commodities Pvt Ltd, notes that the demand for Corn in South-East Asia increased the export. Presently, the stock of Corn is also being made available at Rs 2200 per quintal only, although many international exporters are buying Corn in bulk. This supply is going from Karnataka and Andhra Pradesh, but it is still unclear for how long because the moisture in Corn increased due to the rains. Although a good yield of Corn is expected in the Kharif season this year, there are strong possibilities of the Government taking a big decision to control its demand, supply, and prices.
Other sources: ABPLIVE
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