Exports of maize almost stopped as demand increased

Mumbai: Exports of maize have almost come to a standstill due to a sharp increase in demand from domestic poultry and ethanol industries. Strong demand at home has pushed up maize prices, resulting in India's maize prices not being competitive in the export market, market circles said.

In the first fortnight of January compared to October, the price of maize in the domestic market has jumped by twenty percent. The price of maize has increased to Rs 2400 per quintal.

India normally exports 250 to 300,000 tonnes of maize every month, but only 30,000 tonnes of maize was exported in December, according to available data.

India's traditional buyers such as Vietnam, Nepal, Sri Lanka, Malaysia etc. are now looking towards South American countries for the purchase of maize as these countries are offering maize at cheaper prices than India, said a local exporter.

Exports of maize from India have almost stopped. In the domestic market, there has been strong demand for corn from ethanol producers and the poultry industry, due to which prices have remained firm.

South American corn is being offered at $230 per ton (FOB) against Indian corn at $300 per ton (FOB). In such a situation, South Asian countries have almost stopped buying from India.

After the ban on the use of sugarcane juice for ethanol, the use of corn for ethanol production has increased, which has also pushed up domestic corn prices.

The government has recently increased the procurement price of corn-based ethanol. Sources said that rising procurement prices are also supporting maize prices.