April 10, 2008

India to export 2 million tonnes of corn in May on higher produce

India is set to export around 2.1 million tones of corn in May on higher output and cheaper prices, a trade official said Wednesday.

The rise of US and South American corn and the lack of Chinese exports have given Indian corn exporters an opportunity to tap Asian and Middle East markets.

Amit Sachdev, the India-based representative of the US Grains Council, said India has already exported 1.7 million tonnes of corn by now and has contracted about 0.4 million tonnes for export by May.

Sachdev added that the country would likely complete exporting about 2.1 million tonnes around May.

India's corn shipments this year has risen more than five times than that of year 2006/07, which was 400,000 tonnes.

In 2007/08, India's corn crop is pegged around 16.78 million tonnes, higher from 15.1 million tonnes the previous year.

The country consumes about 14 million tonnes a year.

Mohanlal Vedant, president of Nizamabad Chamber of Commerce and Industry, said higher crop and reduced consumption from the poultry industry is aiding exports.

The poultry industry of India, a major consumer of corn, had cut its output estimates by about 25 percent after India confirmed a bird flu outbreak on January 15, 2008.