April 20, 2024


Imagination at work

Vietnam scouts for Indian corn; Bangladesh, Nepal buying good volumes

India is getting very good enquiries for its corn (maize) from Vietnam even as it carries on to export very good volumes to Bangladesh and Nepal, which are sourcing extra of the coarse cereal from New Delhi as opposed to other sources, in accordance to traders and exporters.

“We have started getting very good enquiries from Vietnam as rates have started to average,” claimed M Madan Prakash, President, Agri Commodities Exporters Association.

According to data from Agricultural and Processed Food items Goods Export Advancement Authority (APEDA), exports of cereals, generally corn, extra than doubled to one.fifty two million tonnes (mt) valued at ₹2,848 crore in the course of the April-August period of the existing fiscal. Through the identical period a 12 months ago, the shipments had been .72 mt valued at ₹1,177 crore.

Viable option

The US Section of Agriculture has pegged India’s corn exports at 3.five mt in the course of Oct 2020-September 2021 marketing and advertising 12 months. “In 2020-21, higher international corn rates, supported by the steep drop in Brazil’s production thanks to drought and shrinking inventory ranges in the US, have built Indian corn a practical option on the international sector,” it claimed.

“The kharif crop is noted to be very good. As a result, rates have dropped as the new crop has started to get there, largely from South India, in the sector. Price ranges are down to ₹19,000-twenty,000 a tonne for shipping in Chennai,” claimed Prakash.

Price ranges are presently ₹18,five hundred-18,750 absolutely free-on-rails in Chennai. According to the International 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 produce at $270 (₹20,350). Calendar year-on-12 months, corn rates are ruling at the very least twenty for every cent larger in the international sector.

Bihar resource for Bangladesh

“We are exporting corn to Bangladesh at all around ₹21,000 a tonne as a result of the India-Bangladesh land borders this sort of as Petrapole,” claimed 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 getting delivers from Maharashtra that are priced low at all around ₹15,000-16,000 but logistics is a trouble,” Singh claimed.

In July this 12 months, when corn rates sky-rocketed in the international sector and topped wheat premiums for the 1st time in ten years, India quoted its produce at ₹23,one hundred fifty a tonne absolutely free-on-board.

Then, Chicago corn futures for shipping in July had been quoted at $six.sixty six a bushel (₹19,600 a tonne). Presently, December contracts are ruling at $five.32 a bushel (₹15,850 a tonne).

Most important importer

APEDA data exhibit that in the course of April-August Vietnam emerged the major importer of Indian corn, shopping for above .six mt, whilst Bangladesh acquired .43 mt and Nepal .twenty five mt.

“During July-September exporters who experienced stocks of the aged crop with them shipped to Vietnam at $310-twenty price tag and freight,” ACEA’s Prakash claimed.

A trade analyst claimed Vietnam has been shopping for extra corn from India above the very last 6 months. “Vietnam will continue on to invest in to meet its feed specifications. Almost all nations are shopping for from the international sector,” the analyst claimed.

The USDA claimed surging freight rate is one more explanation why Indian corn built its way into South-East Asia. “Global ocean freight premiums elevated promptly thanks to larger Chinese demand for agricultural commodities, top to congestion in Chinese ports, delays, and reduced availability for vessels,” USDA claimed.

Freight amount spike

Earlier, Malaysia and Vietnam sourced corn from Brazil, Argentina, and Ukraine. But, a lack in containers and the spike in all freight premiums pressured them to glance for different suppliers. “This has provided an chance for Indian exporters to fill unmet demand as a provider with a rate advantage,” the USDA claimed, pointing out that Indian corn has historically not been competitive in the international sector.

The key explanation for Indian corn not currently being competitive in the international sector is the Centre fixes a least assistance rate (MSP) for the coarse cereal. For the existing crop 12 months (July 2021-June 2020), the MSP is ₹1,870 a quintal as opposed with ₹1,850 very last 12 months. Presently, corn is quoted in several Karnataka agricultural produce marketing and advertising committee (APMC) yards above ₹1,five hundred a quintal. Price ranges are at the very least ₹200 larger as opposed with very last 12 months.

High dampness

A multinational firm’s export-import formal claimed Vietnam’s existing enquiry may possibly not end result in India getting orders occasionally. “Vietnam will begin enquiring when our new crops appear in. At last, it can take a connect with primarily based on how competitive our rate is. In the past, Vietnam potential buyers experienced backed off,” the formal, who did not wish to be recognized, claimed.

Vangili Subramania, President, Tamil Nadu Poultry Farmers Internet marketing Society, claimed corn rates have started to fall thanks to the arrivals of the new crop. “The Karnataka crop is very good, nevertheless presently the dampness is twenty-22 for every cent. We will get to know the affliction of the Tamil Nadu crop to the conclusion of this thirty day period.” he claimed, introducing that a definite photo of the crop’s rate will be accessible only in the course of January-February.

Prakash, as well, claimed the dampness of the Karnataka crop presently arriving at the APMC yards is higher.

Even with these developments, the USDA estimates corn exports to fall by above fifty for every cent this marketing and advertising 12 months (Oct 2021-September 2022) to one.seven mt. It has also projected India’s corn crop reduced at 30 mt as opposed with 30.five mt a 12 months ago.

According to the Ministry of Agriculture, India’s kharif corn production is projected at 21.24 mt as opposed with 21.44 mt very last 12 months (for every fourth advance estimate). Rabi maize output very last crop 12 months was pegged at ten.seven mt.