The Hindu Business Line : Demand flows for corn; exports may top 10 lakh t

DEMAND for Indian corn in the global market is expected to continue, especially from Far-East and South-East Asia on sharp rise in oilmeal and other animal feed prices.

"Demand for our corn continues and so far, contracts for five lakh tonnes are reported to have been signed," an exporting firm official, who did not wish to be identified, told Business Line.

Of this, at least two lakh tonnes are expected to have been shipped out, while exporters expect demand for another five lakh tonnes.

"Corn exports are likely to touch 10 lakh tonnes," the official said.

Lower soyabean crop in the US, Brazil and Argentina and its consequent effect on soyameal prices are mainly driving the demand for corn from the country. Though there is demand for soyameal too, it is priced higher than corn.

"Currently, our corn is quoted at $154-155 a tonne f.o.b," the official said.

In comparison, soyameal prices are quoted at $344 a tonne f.o.b Kandla. Even feed wheat prices are quoted higher than corn by a couple of dollars.

"US corn costs $210-220 a tonne c&f South-East Asia," he said.

"Moreover, the US corn is being diverted for ethanol production and hence, availability from that country is tight. On the other hand, China, the other major exporter, has no surplus," he said.

The Chinese crop has been hit by floods as a result of which it is down by at least four million tonnes (mt) to 114 mt.

Usually, the entire corn produced in the country is consumed by the poultry and starch sectors.

But this time, a record corn crop of 12.80 million tonnes during the kharif season has left some surplus for exports.

Besides, the rabi crop is also expected to be good with the acreage rising by one lakh hectares to seven lakh hectares.

"Rabi corn from Andhra Pradesh could hit the market anytime from now," the official said, adding that domestic corn prices were, however, ruling firm at Rs 6,300 a tonne.

After a long gap, Indian corn has hit the global market.

Demand has come especially from Indonesia, Vietnam, and South Korea besides the entire West Asian region, Sri Lanka and Bangladesh.

Though corn exports had slowed down during January-February on the outbreak of avian influenza, demand has picked up since last month as poultry sector has begun to recoup.

"Demand from the feed sector is back and we have enough stocks to meet it," the official added.

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