January 3, 2012

India's corn farmers are admonished to sell their products immediately as farm economists do not anticipate any ascending movement in corn's price until April.

After analysing the market movements that prevailed in Udumalpet market for over 15 years, sources at Domestic and Export Market Intelligence Cell (DEMIC) functioning in Centre for Agricultural Rural Development Studies (CARDS) at Tamil Nadu Agricultural University (TNAU) perceive that the price of corn would hover around INR1,050 (US$19.70) and INR1,100 (US$20.64) a quintal till April.

Thereafter, the prices are expected to look up, increase by INR100 (US$1.88) a quintal to INR1,200 (US$22.51).

Demic has also cited trade sources of hinting about a possible supply crunch after March, leading to a spiralling increase in the price, beyond the INR1,200 (US$22.51) per quintal mark.

Around 1,144,000 tonnes of corn is produced in the state annually.

The major corn growing districts are Perambalur, Dindigul, Coimbatore, Salem, Erode, Virudhunagar, Villupuram, Theni, Tirunelveli and Tiruchi, contributing to 90% of the area and production.

The poultry firms in the State procure corn from Karnataka and Andhra Pradesh till end December as the Tamil Nadu crop arrivals start only from January. Thereafter, the consuming sector (poultry industry) buys the harvested corn in bulk and builds their inventory for the coming months.

Demic sources said the global demand for corn in the ethanol sector was strong to support increased production.