August 5, 2010

India's 2010-11 corn exports seen up on better crop

Due to an expected bigger crop, India's corn exports may rise 8% this fiscal year, the chief of a state-run corn research agency said Wednesday (Aug 4), likely aiding a fall in global and local prices.

India may export at least 2.7 million tonnes of corn in the year that started April 1, said the Directorate of Maize Research director R. Sai Kumar.

The country exported around 2.5 million tonnes in 2009-10, according to industry data. An official estimate is yet to be released. Kumar said corn exports are likely to go up due to higher production; while corn output may rise to close to 20 million tonnes this crop year due to good monsoon rains.

The country's corn production fell 15.7% to 16.64 million tonnes in the last crop year that ended June 30, after the worst drought in around four decades shrank summer-sown crops. The country's weather office has forecast normal monsoon rains for 2010.

More than 60% of India's corn is sown in summer, when the monsoon rains arrive in May-June, while the remaining is grown in winter.

US Grains Council (USGC) India Representative Amit Sachdev said areas under corn have risen marginally this crop year, noting that higher output can be expected, which may also help exports.

India is the world's fifth-largest corn supplier and exports mainly to countries such as South Korea, Taiwan, Malaysia and Vietnam.

Higher corn supplies by India may help ease global prices slightly, which has fallen recently due to good crop prospects in the US, the world's largest producer and exporter, said a senior industry official.

Meanwhile, corn for September delivery on the CBOT ended down 1 cent, or 0.3%, at US$3.89 1/2 on Tuesday (Aug 3). On India's National Commodity and Derivatives Exchange, the September contract fell 3.5% to Rs1,028.50 per 100 kg Tuesday.