Maize exports from India have started picking up as the correction in international prices has made it competitive in the export market. Abundant domestic supply, owing to higher production, has kept the domestic prices lower.
According to the second advance estimates by the government, maize production is expected to be approximately 23.29 million tonne, vis-a-vis last year’s 22.50 million tonne. The maize exports between October 2013 and April 2014 stood at 2.17 million tonne, which is almost one million tonne lower than the corresponding period last year, according to market data.
Despite picking up in last few months, they are likely to be lower by about 26 per cent this year. During the current marketing year (i.e. between October 2013 and September 2014), they are expected to be around 3.40-3.50 million tonne, vis-a-vis 4.76 million tonne last year.
“We expect exports to touch the 3.50 million tonne in the remaining period, as there is a demand from Indonesia, Malaysia, Vietnam, Taiwan and the Middle-East. Higher exports in the last few months have supported prices, and so we believe that prices are likely to remain stable with a positive bias until the next crop season,” said Raju Choksi, vice-president (agri commodities), Anil Nutrients Ltd.
Choksi informed that prices would also be supported by the expectations that El Nino would impact maize production in the upcoming kharif season. “Though, it is bit earlier to give any figures, the confirmation of El Nino’s occurrence would pare expectations of maize production,” he said.
Currently Indian maize is being offered at $240/million tonne freight on board (FOB) Kakinada and Vizag. It was reported that South American corn was sold to buyers in South Korea in the range of $265-269/million tonne, and freight for delivery in the months of September and October 2014. In the domestic markets, maize is being traded in the range of Rs 1,300 and Rs 1,350 per quintal at producing centres.