M. R. SUBRAMANI, THE HINDU BUSINESS LINE
CHENNAI, MAY 9:
Corn (maize) exports are likely to gain on decline in the rupee's value to the dollar.
“The pricing of Indian corn is very competitive and f.o.b prices are much cheaper,” said Mr Amit Sachdev, India representative of the US Grains Council.
“We expect demand to pick up at current price level, though the rupee depreciation has dragged corn prices somewhat lower,” said Mr A. Rajkumar of the Alagendran Group of companies that exports agricultural produce.
“Substantial exports are being made to Far-East nations such as Malaysia, Singapore and Indonesia. We expect exports to Vietnam to pick up from June after its domestic crops gets over,” said Mr Madan Prakash, Director of Rajathi Group of Companies, which is also into the exports of agricultural produce.
At present, Indian corn is quoted at $260 a tonne f.o.b for the crop harvest during rabi and $250 for the harvest during kharif. In comparison, US corn is quoted upwards of $270 f.o.b.
“Prices have come off from $275 a few days ago,” said Mr Rajkumar.
EGYPTIAN DEMAND
“This year, we are seeing demand emanating from Egypt that is buying corn in break bulk consignments,” said Mr Prakash.
For destinations such as Egypt, corn is going from ports such as Kandla, Mangalore in the Western parts.
“From the South, we don't take much interest in shipping corn to Dubai or other such Gulf destinations since the voyage takes a longer time,” said Mr Rajkumar.
IMPORT OF FEED GRAINS
According to traders, Iran plans to increase import of feed grains and is eyeing India for corn.
According to available data, between April 19 and May first week, some 60,000 tonnes of corn were shipped from the Kakinada port.
“The problem with exports is that domestic demand is also good,” said Mr Prakash.
“Corn is ruling at Rs 1,230-1,240 a quintal in the domestic market,” said Mr Rajkumar.
According to Mr Sachdev, corn is ruling marginally lower week-on-week at Rs 11,446 a tonne pan-India. However, year-on-year, prices are higher by 6.7 per cent. The lower price makes maize a good buy for the poultry, dairy and starch manufacturing industry, he said.
POULTRY SECTOR
“The poultry industry is building stocks at around Rs 11,500 a tonne. For someone selling maize, it is easy to sell to the poultry sector since quality matters little,” said Mr Prakash.
The poultry industry accepts corn with higher moisture, though it is concerned with presence of any fungus in consignments. On the other hand, the starch industry is not concerned much with fungus presence too.
“Exports will surely increase after June since no country will have corn crop. Therefore, importing nations will have to depend on India,” said Mr Rajkumar.
The bullishness for exports is despite corn plantings in the US rising for the period up to May 6. US could harvest a record crop next season.
Global stocks are also seen rising to a three-year high.
DOMESTIC PRODUCTION
Domestic corn production for the current season ending June has been estimated at 21.33 million tonnes, against a record 21.73 million tonnes last season.
Meanwhile in the futures market, maize for May delivery was down 2.16 per cent at Rs 1,132 a quintal, while the June contract was quoted at Rs 1,168.
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