India is acquiring superior enquiries for its corn (maize) from Vietnam even as it proceeds to export superior volumes to Bangladesh and Nepal, which are sourcing extra of the coarse cereal from New Delhi in comparison to other sources, according to traders and exporters.

“We have started acquiring superior enquiries from Vietnam as price ranges have started to moderate,” mentioned M Madan Prakash, President, Agri Commodities Exporters Association.

In accordance to info from Agricultural and Processed Foods Goods Export Progress Authority (APEDA), exports of cereals, mainly corn, extra than doubled to one.fifty two million tonnes (mt) valued at ₹2,848 crore all through the April-August period of time of the present fiscal. All through the same period of time a yr in the past, the shipments were .72 mt valued at ₹1,177 crore.

Practical choice

The US Division of Agriculture has pegged India’s corn exports at three.5 mt all through October 2020-September 2021 advertising yr. “In 2020-21, high world-wide corn price ranges, supported by the steep slide in Brazil’s generation due to drought and shrinking inventory degrees in the US, have manufactured Indian corn a viable choice on the world-wide marketplace,” it mentioned.

“The kharif crop is noted to be superior. Therefore, price ranges have dropped as the new crop has started to get there, largely from South India, in the marketplace. Charges are down to ₹19,000-twenty,000 a tonne for shipping and delivery in Chennai,” mentioned Prakash.

Charges are now ₹18,five hundred-18,750 absolutely free-on-rails in Chennai. In accordance to the Global Grains Council, Argentine corn is quoted at $242 (₹18,715) a tonne absolutely free-on-board, Brazil at $272 (₹20,five hundred) and the US make at $270 (₹20,350). Yr-on-yr, corn price ranges are ruling at least twenty for every cent larger in the world-wide marketplace.

Bihar source for Bangladesh

“We are exporting corn to Bangladesh at around ₹21,000 a tonne by way of the India-Bangladesh land borders these types 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 acquiring offers from Maharashtra that are priced low at around ₹15,000-sixteen,000 but logistics is a problem,” Singh mentioned.

In July this yr, when corn price ranges sky-rocketed in the world-wide marketplace and topped wheat fees for the initial time in 10 a long time, India quoted its make at ₹23,a hundred and fifty a tonne absolutely free-on-board.

Then, Chicago corn futures for shipping and delivery in July were quoted at $6.sixty six a bushel (₹19,600 a tonne). At the moment, December contracts are ruling at $5.32 a bushel (₹15,850 a tonne).

Greatest importer

APEDA info exhibit that all through April-August Vietnam emerged the most significant importer of Indian corn, obtaining over .6 mt, when Bangladesh purchased .forty three mt and Nepal .25 mt.

“During July-September exporters who had stocks of the aged crop with them delivered to Vietnam at $310-twenty expense and freight,” ACEA’s Prakash mentioned.

A trade analyst mentioned Vietnam has been obtaining extra corn from India over the final 6 months. “Vietnam will go on to buy to meet its feed prerequisites. Just about all nations around the world are obtaining from the world-wide marketplace,” the analyst mentioned.

The USDA mentioned surging freight cost is another motive why Indian corn manufactured its way into South-East Asia. “Global ocean freight fees improved swiftly due to larger Chinese demand from customers for agricultural commodities, foremost to congestion in Chinese ports, delays, and reduce availability for vessels,” USDA mentioned.

Freight fee spike

Previously, Malaysia and Vietnam sourced corn from Brazil, Argentina, and Ukraine. But, a scarcity in containers and the spike in all freight fees compelled them to search for alternative suppliers. “This has furnished an opportunity for Indian exporters to fill unmet demand from customers as a supplier with a cost edge,” the USDA mentioned, pointing out that Indian corn has traditionally not been aggressive in the world-wide marketplace.

The major motive for Indian corn not being aggressive in the world-wide marketplace is the Centre fixes a minimal aid cost (MSP) for the coarse cereal. For the present crop yr (July 2021-June 2020), the MSP is ₹1,870 a quintal in comparison with ₹1,850 final yr. At the moment, corn is quoted in various Karnataka agricultural make advertising committee (APMC) yards over ₹1,five hundred a quintal. Charges are at least ₹200 larger in comparison with final yr.

Large dampness

A multinational firm’s export-import formal mentioned Vietnam’s present enquiry may perhaps not result in India acquiring orders at times. “Vietnam will commence enquiring when our new crops appear in. Finally, it usually takes a call primarily based on how aggressive our cost is. In the earlier, Vietnam prospective buyers had backed off,” the formal, who did not would like to be recognized, mentioned.

Vangili Subramania, President, Tamil Nadu Poultry Farmers Marketing and advertising Modern society, mentioned corn price ranges have started to fall due to the arrivals of the new crop. “The Karnataka crop is superior, though now the dampness is twenty-22 for every cent. We will get to know the problem of the Tamil Nadu crop in the direction of the finish of this month.” he mentioned, adding that a definite image of the crop’s cost will be offered only all through January-February.

Prakash, way too, mentioned the dampness of the Karnataka crop now arriving at the APMC yards is high.

In spite of these developments, the USDA estimates corn exports to fall by over fifty for every cent this advertising yr (October 2021-September 2022) to one.7 mt. It has also projected India’s corn crop reduce at thirty mt in comparison with thirty.5 mt a yr in the past.

In accordance to the Ministry of Agriculture, India’s kharif corn generation is projected at 21.24 mt in comparison with 21.forty four mt final yr (for every fourth advance estimate). Rabi maize output final crop yr was pegged at 10.7 mt.