January 28, 2008

India's corn exports may hit 1.5 million tonnes in first quarter 
 

India may export 1 million to 1.5 million tonnes of corn in the first three months of this year, thanks to China's reduced presence on the international corn market.

Amol Sheth, president of the All India Starch Manufacturers Association, a grouping of corn users reported the figures Friday (January 28, 2008)

He said China's absence from the corn export market over the past several months has helped create demand for Indian corn in East Asia and the Middle East.

China has not issued fresh corn export quotas since March last year, as it wants to keep domestic grain prices under check. In addition, the Chinese government has also imposed an export tax of 5 percent-25 percent on rice, corn, wheat and soy.

Sheth said corn users in India "don't have much of an issue" with the surge in demand for corn exports, as domestic corn prices are still in line with international prices.

"Indian corn prices have risen by around 12 percent so far this month, in keeping with the bullishness in corn prices on the Chicago Board of Trade," said Sheth.

Sheth, however, added that what needs to be watched is the availability of corn in India through the end of the year.

India's poultry users and the starch industry have reissued calls for controls over corn exports last week but these were dismissed by Agriculture Minister Sharad Pawar, saying limitations would hurt corn growers.