October 17, 2012

India's 2011-12 corn export increase to 3.5 million tonnes

In the marketing year ended September 30, India's corn exports are estimated to have risen to 3.5 million tonnes from 3.34 million tonnes a year ago on higher demand.

"Calculations are still going on for the season, but approximately 3.5 million tonnes would be the total exports," he said.

The country exported corn to traditional markets in West Asia and the Asia Pacific region, he added.

The official, however, said it was difficult to give any outlook for 2012-13 (October-September) due to low stocks and currency fluctuation, he said.

The rebound in the rupee against the US dollar may force Indian exporters to renegotiate corn export deals, he added. A stronger rupee makes overseas sale less remunerative for exporters.

"Though it is very difficult to say about the country's closing stocks for the year ended September 30, it would be negligible because of rising demand in domestic market and higher exports (last year)," he said.

Corn supply is likely to be tight this year due to lower output estimate and high demand from the fodder sector, he said. Diversion to fodder is higher in Maharashtra and Karnataka. Corn has good demand from fodder, starch, poultry, bio fuel and food industry, he added.

Moreover, harvest of kharif corn crop is progressing at a slow pace, which could further delay rabi sowing of the commodity, the official said.

The government has projected India's kharif corn production in 2012-13 at 14.89 million tonnes, down from 16.22 million tonnes a year ago.