Last Updated :
25 January 2008 at 12:00 IST
Call to regulate maize exports
Commodity Online RAJKOT: With supply from US and China cut short, maize market is hotting up in India. The prices have already skyrocketed and hit the Rs 1,000 per quintal level.
With demand fro the commodity rising in China and the US, those countries have reduced export of maize.
Price of maize, which prevailed between Rs 500-550 per quintal in 2005-06, increased to Rs 900 in some north Indian centres recently. It had gone up to Rs 1,000 per quintal.
Considering the looming shortage in the maize market, All India Start Manufacturers Association (AISMA) has urged the Centre to regulate the exports of maize to ensure availability for the domestic market.
In China, the government controls export of maize and accords priority to domestic market and only after the demand of local manufactuers was met, it allows export of this commodity.
In the US, the demand of ethanol is very high the manufacturer depends on maize and therefore its export is restricted. While in India there is no such mechanism.
The global starch manufacturers prefer to import maize from India as the procurement price is lower compared to the US and China.
By January-end, the country’s maize exports by private traders are likely touch 1,80,000 tonnes on strong demand in South East Asia which would lead to a situation where there would be shortage of maize availability in the country during the end of the season is July-September.
Maize is sown in kharif and rabi with Kharif output being 85% of the total crop and Rabi being 15%.
Kharif crop is harvested in October and November and Rabi crop in April. Estimated crop of maize is 16 million metric tonnes (MMTs) and Rabi 3 MMT. The expected demand is 16.05 MMT.
In the representation to the Centre, AISMA stated that its members manufacture products like maize starch, liquid glucose, dextose monohydrate, dextrose anhydrous, sorbitol, malto syrup etc.
The finished goods manufactured by starch companies are used by 30 industries engaged in the areas of textiles, paper, pharmaceutical, food and confectionery, FMCG and cattle feed and poultry.
With the maize prices soaring, poultry industry is also reeling under big problems. Maize, a main content in the feed, cost will add to the production coat of the poultry industry, which is already under threat from the bird flu spreading in West Bengal districts.
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