India, which made a record maize export last year, may see a huge dent in shipments in 2008-09 in the wake of economic recession, which has lowered the demand for the commodity globally, and also the uncompetitive prices here would fail to enthuse global buyers.
After vetting the global situation, experts have forecasted a declining trend for India’s maize exports. They said that India would export 250,000-300,000 tonnes at the maximum in the current marketing year, down by 90 per cent from nearly 3 million tonnes (MT) in a year-ago period.
“India’s maize exports cannot be huge this year because of the downturn in the global market. It would be somewhere between 250,000-300,000 tonnes,” India-based representative of the US Grains Council Amit Sachdev said.
The demand has fallen drastically in the global market. Besides India, US maize exports are also forecasted to be lower this year, he said, adding that there were hardly any shipments sent in the first few months of the 2008-09 marketing year, which runs from October to September. The US Department of Agriculture (USDA) too pegged India’s maize exports downward to 250,000 tonnes saying that the uncompetitive prices may not lure global buyers.
“Domestic maize prices are currently at around Rs 7,900 ($164) a tonne in producing areas (India), somewhat below the support price, which works out at $195 a tonne free on board. Considering the uncompetitiveness of Indian maize, USDA revises India’s maize exports in 2008-09 downward to 250,000 tonnes,” it said.
Business Standard