India is having good enquiries for its corn (maize) from Vietnam even as it proceeds to export good volumes to Bangladesh and Nepal, which are sourcing far more of the coarse cereal from New Delhi when compared to other resources, in accordance to traders and exporters.
“We have started having good enquiries from Vietnam as price ranges have started to moderate,” mentioned M Madan Prakash, President, Agri Commodities Exporters Affiliation.
In accordance to details from Agricultural and Processed Food items Solutions Export Growth Authority (APEDA), exports of cereals, mainly corn, far more than doubled to one.52 million tonnes (mt) valued at ₹2,848 crore through the April-August time period of the present-day fiscal. All through the identical time period a 12 months in the past, the shipments were .seventy two mt valued at ₹1,177 crore.
The US Division of Agriculture has pegged India’s corn exports at three.5 mt through Oct 2020-September 2021 internet marketing 12 months. “In 2020-21, large worldwide corn price ranges, supported by the steep drop in Brazil’s generation owing to drought and shrinking stock stages in the US, have made Indian corn a feasible option on the worldwide marketplace,” it mentioned.
“The kharif crop is noted to be good. Hence, price ranges have dropped as the new crop has started to get there, primarily from South India, in the marketplace. Selling prices are down to ₹19,000-20,000 a tonne for supply in Chennai,” mentioned Prakash.
Selling prices are currently ₹18,five hundred-eighteen,750 free of charge-on-rails in Chennai. In accordance to the Worldwide Grains Council, Argentine corn is quoted at $242 (₹18,715) a tonne free of charge-on-board, Brazil at $272 (₹20,five hundred) and the US deliver at $270 (₹20,350). Calendar year-on-12 months, corn price ranges are ruling at minimum 20 for every cent greater in the worldwide marketplace.
Bihar supply for Bangladesh
“We are exporting corn to Bangladesh at all around ₹21,000 a tonne as a result of the India-Bangladesh land borders these kinds of as Petrapole,” mentioned Mukesh Singh, Director, MuBala Agro Commodities Pvt Ltd.
Most of the corn exported to Bangladesh is sourced from Bihar and, to some extent, Uttar Pradesh. “We are having presents from Maharashtra that are priced minimal at all around ₹15,000-16,000 but logistics is a dilemma,” Singh mentioned.
In July this 12 months, when corn price ranges sky-rocketed in the worldwide marketplace and topped wheat costs for the initially time in ten decades, India quoted its deliver at ₹23,150 a tonne free of charge-on-board.
Then, Chicago corn futures for supply in July were quoted at $six.66 a bushel (₹19,600 a tonne). Presently, December contracts are ruling at $5.32 a bushel (₹15,850 a tonne).
APEDA details show that through April-August Vietnam emerged the biggest importer of Indian corn, purchasing about .six mt, although Bangladesh acquired .43 mt and Nepal .25 mt.
“During July-September exporters who had stocks of the aged crop with them transported to Vietnam at $310-20 price and freight,” ACEA’s Prakash mentioned.
A trade analyst mentioned Vietnam has been purchasing far more corn from India about the final six months. “Vietnam will proceed to invest in to meet up with its feed prerequisites. Practically all countries are purchasing from the worldwide marketplace,” the analyst mentioned.
The USDA mentioned surging freight price tag is an additional rationale why Indian corn made its way into South-East Asia. “Global ocean freight costs enhanced promptly owing to greater Chinese desire for agricultural commodities, leading to congestion in Chinese ports, delays, and lessen availability for vessels,” USDA mentioned.
Freight charge spike
Previously, Malaysia and Vietnam sourced corn from Brazil, Argentina, and Ukraine. But, a scarcity in containers and the spike in all freight costs pressured them to search for choice suppliers. “This has furnished an opportunity for Indian exporters to fill unmet desire as a provider with a price tag advantage,” the USDA mentioned, pointing out that Indian corn has traditionally not been competitive in the worldwide marketplace.
The primary rationale for Indian corn not currently being competitive in the worldwide marketplace is the Centre fixes a least assist price tag (MSP) for the coarse cereal. For the present-day crop 12 months (July 2021-June 2020), the MSP is ₹1,870 a quintal when compared with ₹1,850 final 12 months. Presently, corn is quoted in numerous Karnataka agricultural deliver internet marketing committee (APMC) yards about ₹1,five hundred a quintal. Selling prices are at minimum ₹200 greater when compared with final 12 months.
A multinational firm’s export-import formal mentioned Vietnam’s present-day enquiry might not result in India having orders occasionally. “Vietnam will start enquiring when our new crops appear in. Ultimately, it can take a phone based on how competitive our price tag is. In the previous, Vietnam prospective buyers had backed off,” the formal, who did not want to be discovered, mentioned.
Vangili Subramania, President, Tamil Nadu Poultry Farmers Marketing and advertising Modern society, mentioned corn price ranges have started to fall owing to the arrivals of the new crop. “The Karnataka crop is good, nevertheless currently the moisture is 20-22 for every cent. We will get to know the affliction of the Tamil Nadu crop in direction of the conclusion of this thirty day period.” he mentioned, incorporating that a definite picture of the crop’s price tag will be readily available only through January-February.
Prakash, much too, mentioned the moisture of the Karnataka crop currently arriving at the APMC yards is large.
Despite these developments, the USDA estimates corn exports to fall by about 50 for every cent this internet marketing 12 months (Oct 2021-September 2022) to one.seven mt. It has also projected India’s corn crop lessen at 30 mt when compared with 30.5 mt a 12 months in the past.
In accordance to the Ministry of Agriculture, India’s kharif corn generation is projected at 21.24 mt when compared with 21.forty four mt final 12 months (for every fourth progress estimate). Rabi maize output final crop 12 months was pegged at ten.seven mt.