India’s Corn Export Hits an All-Time High Record

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Aug 16, 2022 | Agricultural Markets

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Corn is India’s third most important cereal crop after rice and Wheat. The Corn export totaled USD816.3 million in the first 10 months of the current fiscal year 2021-22 (April-January), already exceeding the USD634.8 million of the last financial year.

It grew nearly sixfold, taking the total value of shipment to USD1593.7 million in the last three years despite logistical challenges posed by the COVID19 pandemic outbreak.

Neighboring countries like Bangladesh and Nepal are the major importers of Indian Corn. Bangladesh has imported Corn worth USD345.5 million in the current fiscal (April-January), while Nepal has imported Corn worth USD132.1 million during this period.

Vietnam has become a significant export destination under the Ministry of Commerce & Industry’s initiatives to explore and diversify new markets. India exported Corn worth USD244.2 million to Vietnam in the first 10 months of the current fiscal. Other main importing countries are Malaysia, Myanmar, Sri Lanka, Bhutan, Taiwan, and Oman.

The cereal crop is primarily cultivated in the states of Karnataka, Madhya Pradesh, Kerala, Bihar, Tamil Nadu, Telangana, Maharashtra, and Andhra Pradesh. With the highest genetic yield potential among the cereals, Corn is one of the most versatile emerging crops with broader adaptability under varied agro-climatic conditions.

In addition to staple food for human beings and quality feed for animals, Corn serves as a basic raw material/ingredient for many industrial products, including starch, oil, protein, alcoholic beverages, food sweeteners, pharmaceuticals, cosmetics, film, textile, gum, package, and paper industries, etc.

Sunflower oil export sales by million USD

The rise in the export of agricultural and processed food products has been largely due to the various initiatives taken by the Agricultural and Processed Food Products Export Development Authority (APEDA). It includes organizing B2B exhibitions in different countries and exploring new potential markets through product-specific and general marketing campaigns with the active involvement of Indian Embassies. They also manage the participation of exporters in the International Trade Fairs and national events like AAHAR, Organic World Congress, BioFach India, etc., to support agri-exports.

Moreover, APEDA has taken several initiatives to promote Geographical Indications (GI) registered agricultural and processed food commodities in India by organizing virtual Buyer-Seller Meets on agricultural and food products with the major importing countries worldwide.

Price Growth Expectation

In Karnataka, Maharashtra, Gujarat, and Rajasthan, the price of Corn has reached from Rs 2200 to Rs 2600 per quintal. The rate rises to Rs 2000 in most of the Mandis while its Minimum Support Price (MSP) is Rs 1962 per quintal. Experts project that this year the price of Corn is expected to be higher than the MSP because such international conditions are being created.

According to Mr.Rajiv Yadav, Senior Vice President, Origo Commodities, due to the increasing demand from the industrial sector coupled with less production in the major producing countries, the prices of Corn will strengthen in the global market. Due to continuous demand from poultry feed and starch companies in the coming months, Corn prices in Gulabbagh Mandi are likely to trade in the range of Rs 2,400-Rs 2,500.

Global Corn production is expected to decline due to lower production in major countries, including the US, China, European Union, and Ukraine. However, the expected increase in production in Brazil and Argentina will help offset the shortfall in supply.

In India, Corn is grown throughout the year, and it is predominantly a Kharif crop, with 85 percent of the area under cultivation during the season. Corn production in India was 32.5 million metric tons in 2021-22, but it is estimated to decrease to 31.5 million metric tons in 2022-23.

 

 

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