January 30, 2007

 

Duty cut on corn likely to spur maize import in India
 

 

The Indian government's decision to scrap customs duty on corn could result in imports of about 2.5 million tonnes of maize to bridge the demand-supply gap that was caused due to the exports of maize from the country.

 

Poultry owners seem happy with this decision of the government.  This year, the government exported a significant amount of maize which resulted in a shortfall in the domestic market.

 

Anticipating a shortage in April, poultry firm Suguna Group intends to import maize during that period, said the firm's managing director.

 

The domestic prices of maize are lower compared to global market prices and imports would not have any major impact in the international prices as the quantity is not huge. International prices are ruling at INR 10,000 (US$227) a tonne while domestic prices of maize are INR 8,000 (US$181) a tonne.

 

Scrapping import duty could prove a wise decision. The rates of maize are expected to go down as fresh stocks come in the market, said Poultry Federation of India treasurer Ricky Thaper.

 

The cost of production for the poultry industry would come down as maize is used for feeding poultry.

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