Maize exports pick up on price parity and abundant domestic supplies

KOLKATA: Maize exports from India have started picking up as correction in international prices have made Indian maize competitive in the export market. Abundant domestic supplies due to higher production have kept the domestic prices in a narrow range. According to second advance estimates of government, maize production is expected at 23.29 million tonnes against 22.50 million tonnes last year.

Maize exports during October 2013 to April 2014 stood at 2.17 million tonnes which is almost 1.00 million tonnes lower than the corresponding period last year. Despite picking up in last few months, maize exports are likely to be lower by around 26% this year. During current marketing year from October 2013 to September 2014, maize exports are expected to be around 3.40-3.50 million tonnes against 4.76 million tonnes last year.

“We expect exports to touch 3.50 million tonnes in the remaining period as there is a demand from Indonesia, Malaysia, Vietnam, Taiwan and Middle East. Higher exports in last few months have supported prices and so we believe that prices are likely to remain stable with positive bias till next crop season,” said Raju Choksi, vice-president (Agri Commodities), Anil Nutrients.

Choksi informed that prices will also get support from the expectations that El Nino will impact maize production in the upcoming kharif season. “Though, it is bit earlier to give any figures, confirmation of El Nino occurrence would pare expectations of maize production,” he added.

Currently Indian maize is being offered at $240 per metric ton fob Kakinada/Vizag. It is reported that South American origin corn has been sold to buyers in South Korea in the range of $265-269 per metric ton cost and freight for delivery in the months of Sept and Oct 2014. In the domestic markets, maize is trading in the range of Rs. 1,150 to Rs. 1,250 per quintal at producing centers.