Indian corn (maize) exports are on the rise as the coarse cereal is enjoying an advantage in freight charges in Southeast and West Asia.
The export demand has resulted in domestic prices ruling higher than the minimum support price (MSP) of ₹1,962 a quintal, traders and exporters say.
“We have stiff competition from Brazil, Argentina, and the Black Sea region. But our freight to destinations in South-East Asia and West Asia is cheap. It is proving to be an advantage,” said Delhi-based exporter Rajesh Paharia Jain.
Rise hits parity
Though Indian corn is quoted at $310 a tonne free-on-board (f.o.b) compared with $290, the low freight charge is giving it the market share in countries such as Vietnam, Malaysia, and Oman.
“We are exporting to Vietnam and Malaysia at around $310 f.o.b. Domestic prices are ruling high, and we are getting deliveries for export in Mumbai at ₹23,500 a tonne and in Chennai at ₹24,500,” said M Madan Prakash, President, Agri Commodity Exporters Association (ACEA).
“Corn prices have increased in the past month, affecting our parity. Prices have increased from ₹18,000-20,000 a tonne to over ₹21,000. Also, the moisture in some of the arrivals is high, at 15 to 17 per cent,” said Mukesh Singh, Director of Mumbai-based MuBala Agro.
Emerging major player
According to data from Agmarknet, a unit of the Agriculture Ministry, the weighted average price of corn currently is ₹2,114 per quintal, against ₹1,775 a year ago.
“Stockists are currently buying, and arrivals are good in the domestic market,” said ACEA’s Prakash.
“At least 3.5 lakh tonnes have headed towards Vietnam this fiscal. We are a major player in the region,” said Jain.
During the current fiscal, 19.53 lakh tonnes (lt) valued at $653.36 million have been exported during the April-November period of the current fiscal. In 2021–22, 36.90 lt were exported at a value of $1.02 billion.
Bangladesh is the largest importer of Indian corn during the period, buying 11.5 lt, while Nepal purchased 2.7 lt and Vietnam 2.3 lt during the period.
Lanka begins enquiries
“The problem now is that exporters are fulfilling deals on hand, but they don’t have much stock. Corn suppliers in West Bengal are using it for their own production,” said Singh.
“Of late, we are getting good enquiries from Sri Lanka,” Jain said.
“Bangladesh, Vietnam, and Malaysia continue to buy from India,” said Singh.
Indian corn prices have gained in tandem with global prices, ruling near the highs witnessed in November 2022. Currently, corn futures on the Chicago Board of Trade (CBOT) are quoting at $6.8 a bushel (₹22,100 a tonne).
Global corn prices have gained on supply chain disruption, rising input costs, and higher demand. The ongoing Ukraine war, late plantings in the US, and dry weather in South America are causing concern in the market, particularly since Kyiv contributes 15 per cent to the export market.
According to the Food and Agriculture Organisation, global corn production is estimated to be 4.7 per cent lower in 2022–23 at 1,156 million tonnes (mt) against 1,211.8 mt in 2021–22. Supply is projected 2.5 per cent lower at 1,461.1 mt and ending stocks will likely be over 7 per cent lower at 283.5 mt.
India has been aided by a record kharif maize production of 23.10 mt compared with 22.63 mt last kharif season.