January 18, 2008

India's corn exports continue despite soaring domestic prices 

Despite soaring corn prices within the country, India's exporters are doing a roaring trade exporting the grain, according to Commodity Online.

The price of corn, a main ingredient of poultry feed, has been soaring unprecedentedly.

The constant price rise has hit the starch and poultry industry hard. Both sectors have demanded for regulating grain export from the government, as unchecked exports are believed to be the cause of incessant price increases. India has exported over 500,000 tonnes of corn to Asian countries with another 200,000 million tonnes on the ports. Corn-based industries said that exports could surpass a million tonnes, leading to a national shortage of corn.

Starch prices have already been driven up over Rs50-100 (US$1.3 to US$2.55) to Rs775-825 (US$19.7 to US$21) a bag (of 50 KG) in a mere week's time.   

Still, prices may continue to increase to Rs850-900 (US$21.6 to US$23) per bag.

Spot prices of corn have seen a 17-percent increase since the beginning of the month to Rs790 (US$20.1) to Rs675 (US$17.2) per bag (of 50 KG). Future prices also rallied  over Rs90 (US$2.3) per 50 KG.

India expects a little over 13 million tonnes of corn in autumn against 11 million tonnes from last year. Winter crop usually adds about 2.5 to 3 million tonnes. Domestic consumption stands at over 14 million tonnes.

National Egg Co-ordination Committee said the rise in corn prices is hurting the poultry industry. Sharp rises in rates of chicken and egg across the country will ensue  if the current rally continues for another fortnight, the group said.

The National Egg Co-ordination Committee said soaring  corn prices are  killing the poultry industry. If the current rally continues for another two weeks, there will be sharp rises in the rates of chicken and egg across the country.

High dometic demand for corn worldwide has prompted  corn producing countries such as China and Argentina to control exports through levied duties as to ensure domestic availability. The NECC feels that the government should implement the same.