The erratic monsoon this year would hit corn production despite higher sowing reported across the growing regions in India, an expert said here on Monday.
Corn has been sown in 7.59 million hectares as of September 11, as compared to 7.46 million hectares last year, according to data from the Department of Agriculture & Cooperation of the Union Government.
Corn production is expected to be around 20 million tonnes, the lowest in the last five years due to irregular rainfall across the growing regions of Tamil Nadu, Andhra Pradesh, Maharashtra, and Madhya Pradesh. Last year, the production was 23.67 mt according to the fourth advance estimates of the Centre.
Due to lower production estimates, the price of corn is likely to remain firm, Shashin Desai, Executive Director, Business Operations, Anil Ltd, said.
The production is likely to be hit as yield in the growing regions has fallen this year, compared to last year. The erratic monsoon this year has impacted the yield and the quality of the crop. Though the new crop would put pressure on prices next month, prices are likely to remain firm thereafter as production is expected to fall by around 20 per cent.
Desai said corn prices have fallen globally due to sustained higher ending stocks since the last couple of years. “The USA has seen their reserves swell to its highest in the last 28 years, due to which their ending stocks are also likely to remain high. But, lower domestic supply in India would support prices going forward,” Desai added.
According to latest reports by the Food and Agriculture Organisation of the United Nations, international food commodity prices continued to decline in August as ample supplies, a slump in energy prices, and concerns over China's economic slowdown all contributed to the sharpest fall of the FAO Food Price Index in almost seven years.
“Due to lower prices of corn internationally, the export of corn is not viable this year, as the domestic price is higher compared to international prices. “We believe lower exports would support domestic production this year and, thereby, check higher prices.”