December 1, 2006
India's 2006/07 corn export seen up five-fold at 1.5 million tonnes
India's corn exports are expected to rise up to five-fold in the current marketing year that began October to 1.5 million tonnes, All India Starch Manufacturers Association President Amol S Sheth said Thursday (Nov 30).
"India's corn exports are...between 300,000 tonnes and 400,000 tonnes in 2005/06 but may touch 1.5 million tonnes this year due to strong demand in South-east Asia," Sheth told reporters.
Marketing year for corn runs from October to September.
Sheth said traditionally India has been exporting corn to mostly Sri Lanka, Bangladesh and Nepal but due to a cut in global supplies from the US, China and Argentina, now even South-east and the Middle East Asian countries are looking to buy from India.
Sheth said since October, traders have already contracted deals to ship out close to 200,000 tonnes of corn to South-east Asian countries.
These contracts are in addition to the usual annual exports to neighbouring South Asian countries, he noted.
He said the significant rise in exports can tighten local supplies and therefore government should step in to regulate the trade.
"All exports should be channelled through a government agency," he said.
According to government estimates, India's summer-sown corn output, currently being harvested, is projected to have declined to 11.43 million tonnes from 12.41 million tonnes in the year-earlier period.
India also normally harvests around 2.5 million tonnes of corn in April from the winter plantings.
The country's annual corn consumption is around 14 million tonnes.
India annually allows imports of 400,000 tonnes corn at a concession rate of 15 percent import duty compared with the usual duty of 60 percent. These imports have not taken place in previous years due to ample local corn.
Sheth said after factoring in the import duty at the current international price levels, imports by India's corn producing industry are not viable.
