Maize imports likely to tame prices, help poultry sector.

PUNE: Poor rains in June saw the price of maize, an important ingredient for poultry food, rise and the poultry industry hopes the prices will calm down with the Central government suggesting it might allow import of 5 lakh tonnes of maize under the tariff rate quota (TRQ).

Maize spot prices jumped more than 20%, from `13/kg to more than `16/kg, in a month in June. The poultry and starch industry has approached PEC again to allow duty free corn import under TRQ. Public sector firm PEC had floated a tender to import 5 lakh tonnes of maize last year, of which it imported 2.50 lakh tonnes. Trade sources told ET that the government has asked PEC to seek fresh quota of 5 lakh tonnes for 2016-17.

The international prices of genetically modified (GM) corn are down as the US crop is expected to be good. However, India allows import of only non-GMO maize, which is not adequately available in the international market and is more expensive its GM counterpart. The Central government had allowed the industry to import 50,000 tonnes of maize in June. However, the tender had received one bid of $254-255/tonne CNF Gujarat ports, which is way above the ruling domestic prices of about `18/kg.

"The availability of non-GMO corn is a concern as the Ukraine crop is almost at its fag end and new crop will be available for shipments around November. So the expected price for the CIF quotes are likely to range between $250 to 260/tonne," said Rajiv Yadav, VP (grains and oilseeds), Noble Agri.

Source : economictimes.indiatimes.com