India to gain from fall in US output

A drop in maize production in the US, the world's biggest exporter, is expected to give India more room in the international market.

Kaushik Khona, chief financial officer and company secretary, Gujarat Ambuja Exports, a company which is one of the members of the All India Starch Manufacturers' Association, "India has exported a maximum of 1 lakh tonne of maize thus far to countries such as Sri Lanka, Nepal and Bangladesh but this November, it would be raised to 1 MMT of maize owing to a supply deficit in the US."

The US, which supplies around 50 per cent of the world's demand for maize at 299 MMT for a total demand of around 600 MMT, has recorded a deficit in production of the crop by 30 MMT. This has led to a 5 per cent supply gap in the global market.

India, which did not export any maize last year or the year before, has just entered into contract with close to five countries to supply up to 1 MMT of maize.

This year, India would be exporting to Sri Lanka, Bangladesh, China, Nepal and to South Africa for the first time.

"South Africa has traditionally imported maize from the US but for the first time has signed a supply order from India after the production of maize in US dipped due to climatic reasons, " said Khona.

Although the break-up of exports to the countries was not known, Khona put the supply to South Africa at around 50 per cent of the total exports.

India has reportedly exported maize at Rs 725 to Rs 775 per quintal to each of the countries.

"The demand for maize in international markets has gone up owing to rising demand for ethanol which, when procured from maize is a viable alternative to procuring it from sugar molasses," added Khona.