February 14, 2012

India's corn exports have scope to rise

While Indian corn exports have slowed due to a stronger rupee, export orders are expected to pick up as global stocks hit record lows.

With the arrival of the new crop in March-April from Bihar and Andhra Pradesh, we should expect increased orders," said Mumbai-based trader and exporter Amrit Lal Kataria of Mehak Overseas.

He said Indian prices were competitive compared to that of other global players.

According to traders in Nizamabad, the exporters have done major forward contract buying."The poultry industry has slowed down procurement of corn since the past few months.

They are substituting corn with bajra, which was 15% cheaper," said Jaydhar, a broker in Hubli mandi of Karnataka.

Unlike the previous year when corn prices shot up in January-February, the prices have remained stable this time."This year, exporters procured the commodity early and stocked it on signs of increased export orders," said a Delhi-based analyst.

In 2010-11 marketing year (October-September), over 2.8 million tonnes corn was exported.

The industry expects to export three million tonnes this year with over one million tonne already shipped.

With rupee appreciation, the export of both corn and glucose has slowed down but it may rebound, said Vishal J. Majithia, MD of Sahyadri Starch & Industries, and the president of All India Starch Manufacturing Association.

"Demand is stable from textile, pharmaceutical and food processing industries."