Maize costs gain as exports document six-year excessive by admin- Thursday, February 25th, 2021 08:21:19 AM
Malaysia, Vietnam force demand after Bangladesh pauses
Maize (corn) expenses have multiplied via ₹100-one hundred fifty a quintal inside the beyond month on higher export demand for the coarse cereal from countries including Vietnam and Malaysia.
“There is demand for export to Vietnam and Malaysia. This is a usual demand that is visible before the appearance of the Rabi crop,” stated Bimal Bengani, Managing Director of Kolkata-based exporting house Bengani Food Products Pvt Ltd.
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Lower than MSP nonetheless
According to Ministry of Agriculture and Farmers’ Welfare Ministry statistics, maize is ruling at distinct prices depending on satisfactory and production place, ranging between ₹1,350 in step with quintal in Karnataka and as much as ₹1,700 in Tamil Nadu.
The expenses at the Agricultural Produce Marketing Committee (APMC) mandis are, but, lower than the minimum help price of ₹1,850 a quintal fixed for the cutting-edge crop year (July 2020-June 2021).
“Though there may be call for for exports to Far-Eastern countries consisting of Vietnam, domestic call for is also driving fees better,” stated Chennai-based Rajathi Group Director Madan Prakash. The group exports agricultural merchandise.
Malaysia, Vietnam call for
“Maize costs have extended over ₹100 in the beyond month. It expenses ₹1,seven hundred a quintal at Namakkal. Until ultimate month, we had been getting it at ₹1,550,” stated Tamil Nadu Egg Poultry Farmers Marketing Society (PFMS) president Vangili Subramanian.
Demand from Vietnam and Malaysia has been non-stop, said Bimal Bengani.
“Shipments were wearing on. About two to 2.5 lakh tonnes of maize are exported each month to those two destinations,” the Kolkata-primarily based firm’s coping with director stated.
Madan Prakash concurred with the view announcing: “We are exporting near 2,000 tonnes each week to those destinations. We are witnessing a good call for,” he stated.
The Rajathi Group director stated that his organization became getting maize at ₹16,500 a tonne unfastened-on-rails in Mumbai. “Prices are up by ₹1,000 a tonne due to the fact ultimate month,” he said.
Lower than expected output
PFMS’ Subramanian stated maize expenses have elevated seeing that production is anticipated to be lower than preliminary estimates. “At least in Tamil Nadu, the manufacturing seems to be decrease than our initial expectations,” he stated.
Kharif maize manufacturing is expected better at 19.88 million tonnes (mt) this crop 12 months in opposition to 19.Sixty eight mt all through remaining 12 months’s kharif season.
According to the second improve estimates released by way of the Ministry of Agriculture and Farmers’ Welfare on Wednesday, maize production is pegged at a file 30.Sixteen mt towards 28.Sixty four mt final 12 months.
Bangladesh, Nepal aspect
Though shipments are specifically to Vietnam and Malaysia currently, this economic maize exports have already touched a six-year high thanks to Bangladesh and Nepal.
According to Agricultural and Processed Food Products Development Authority (Apeda) data, maize exports throughout the April-November length of the present day fiscal were 14.18 lakh tonnes (3.70 lakh tonnes).
Maize exports had touched the ten-lakh tonnes mark in 2018-19. The shipments touched a file forty seven.88 lakh tonnes at some point of 2012-13 and due to the fact that then there was a downswing. The highest extent exported before this fiscal become in 2014-15 when 28.25 lakh tonnes have been shipped out.
During the April-November period, Bangladesh offered nine.95 lakh tonnes of Indian maize, whilst Nepal bought three.38 lakh tonnes.
“Bangladesh has stopped importing Indian maize on account that its crop is about for arrival,” Bimal Bengani stated.
One of the reasons for Indian maize exports doing well this yr is its competitiveness inside the international market. But for field scarcity and non-availability of liners, exports could have been higher.
Even if Indian maize is obtainable at, say, ₹17,500 ($241.Ninety) a tonne unfastened-on-board, other locations are supplied at higher expenses unfastened-on-board. If shipment charges are introduced, Indian maize exports honestly revel in a bonus.
According to the International Grains Council, the United States is presenting at $251 (₹18,one hundred fifty) from the USA Gulf, Argentina at $246 (₹17,800) and Brazil at $261 (₹18,900) a tonne. Prices are up 41-45 in step with cent, even though they’re presently off fifty two-week excessive via $6 to $15.
Further hike not going
PFMS’ Subramanian said maize fees are unlikely to upward thrust in addition as rooster growers could locate substitutes for feeds in broken rice and other coarse cereals including jowar and bajra.
“Though maize shares in Tamil Nadu are low, we are getting stocks from Andhra Pradesh,” he said.
“The current charges are apt for both maize growers and poultry farmers. Lower maize fees would possibly force growers to shift to different vegetation, while rooster farmers’ production fees will rise further to the already rising expenses together with soyabean,” said Subramanian.
Last yr, maize expenses surged to ₹2,600 a quintal, resulting in home users uploading the coarse cereal. India imported 3.18 lakh tonnes final season, 10 instances the shipments into the u . S . A . All through 2018.