March 26, 2013
In the current season, India's corn exports are expected to be lower by about a third over last year's record high of 4.8 million tonnes on a lower crop and rising domestic demand.
Trade expects corn exports to be in the region of around 3-3.5 tonnes for the crop marketing year-ending August 2013.
"The lower output in the kharif season has already resulted in a decline in exports during the first half," an official with a multinational exporting firm said. The latest export figures are not available.
Corn output in 2012-13 is pegged at around 21 tonnes on account of lower crop in Karnataka, Andhra Pradesh, Maharashtra and Rajasthan due to erratic monsoons. Last year, the country's corn output stood at 21.57 tonnes.
Karnataka, Andhra Pradesh and Maharashtra are the three top corn producing States accounting for half of the country's output. Karnataka accounts for about a fifth of corn harvest, followed by Andhra Pradesh at 18% and Maharashtra at 12%.
Further, the trade believes that the corn has an export window only for the next two to three months till June-July after which the global supplies are expected to ease.
"The rabi corn crop in Bihar, which has been slightly delayed, looks higher by about 20%. There is a potential to export till June-July. With easing global supplies from August and prices coming under pressure, as reflected in the Chicago futures, exports from India were likely to be unviable," an official from another multinational exporter said.
Bihar accounts for about 7% of the country's output of 21 tonnes. The Chicago corn prices have eased on better planting prospects in the US and Brazil. Reports said corn planting in the US for 2013 is forecast to touch 97.75 million hectares, the highest in 77 years.
Corn contracts for May on Chicago Board of Trade are hovering around US$7.26 a bushel. September 2013 contracts are hovering around US$5.97, reflecting an easing trend in prices.
India's corn exports have more than doubled in the past few years from 1.9 tonnes in 2009-10 to 4.8 tonnes in 2011-12. Corn is largely exported to the Far East nations, where it is used for livestock feed.
