March 3, 2008

India corn futures recover on continuous exports

India corn futures gained as the government pose no restrictions to exports by private traders.

Previously, India's poultry and starch industry proposed to the federal government to halt private exports of corn to meet domestic supply and curb feed price hikes.

The gains, however, were lowered as the finance minister proposed a commodity transaction tax on futures trading.

At 2:15 p.m, the most traded April contract was up 0.47 percent at INR861 (US$22) per 100 kg recovering from an early session low of INR854 (US$21).

India produces around 16.78 million tonnes of wheat in 2007/08 and is likely to export more than 1.5 million tonnes of the commodity, mostly bound to other Asian countries, observers said.