India’s corn exports are likely to decline by 37.5 per cent to 3 million tonnes this year due to expected fall in production and weak global prices, a report has said.

The country is estimated to have shipped a record 4.8 million tonnes of corn in 2011-12 marketing year (November- October) despite slowdown in export demand and port congestion in the last two months, it said.

“The MY 2012-13 export forecast is lower at three million tonnes on an expected stronger domestic price of corn compared to last year,” the report by the US Department of Agriculture (USDA) said.

Indian corn for exports is priced in the range of $280-290 per tonne on FOB (Free on Board) at major exporting ports, it said.

USDA said that corn prices in the domestic market gained strongly in July on concerns of drought and strong exports.

Prices eased in the first fortnight of August with the recovery of the monsoon, but moved up again with reports of lower acreage and production prospects, it added.

However, prices have remained sluggish since mid-September on the slowdown in export demand.

Currently, spot prices of corn in the major markets range from Rs 11,800 to Rs 14,000 per tonne ($219—260).

USDA said that domestic prices are likely to ease further as new crop arrival accelerates, which would move below the government’s minimum support price (MSP) of Rs 11,750 ($218) per tonne.

The government agencies may have to intervene in the market to bolster prices through a MSP procurement operation for corn in the upcoming season, it observed.

Due to poor monsoon, the country’s corn production is estimated to decline to 20 million tonnes this year, from 21.57 million tonnes in 2011-12.

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