June 19, 2008

India rises as key exporter amid skyrocketing corn prices

India is rising as one of the primary corn exporters in the face of global hike in corn prices, with Indian corn offered 25 percent against US corn exports.

Proximity to importing countries also gives India an edge over US competitors, the local media said Wednesday (June 18, 2008).

Traders said buyers from Pakistan, Australia and Middle- East are increasingly importing corn from India due to the lower prices compared with other major markets.

Corn prices in the US are around US$400 per tonne while Indian corn prices are at US$300 per tonne.

Since October 2007, India has exported about 2.5 million tonnes of corn, mostly headed to the South-East and the Middle-East countries.

Importing countries like Australia, which have been purchasing corn from the US, have switched their destination over to India lately due to their close proximity to the country and lesser freight cost, All India Starch Manufacturers Association president, Amol S Sheth, said.