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India's outbound shipments of corn are expected to slide 31 per cent to 3.2 million tonnes in the 2013-14 marketing year hit by weak export demand, according to a report by the US Department of Agriculture (USDA).
India is estimated to have shipped a record 4.67 million tonnes of corn (maize) in the 2012-13 marketing year (November-October).
"Corn export is estimated lower at 3.2 million tonnes on weak export demand," the USDA said in the report.
Provisional monthly trade estimates indicate a sharp decline in corn exports since August 2013 due to relatively weak global prices on improved supplies from other competing locations compared to last year, it said.
Besides, corn prices in India have been relatively steady due to strong domestic demand from poultry and starch industry, and the government's intervention of procuring corn at minimum support price of Rs 13,100/tonne in many states.
Domestic spot prices of corn in the major producing states currently range from Rs 11,640 to Rs 13,650 per tonne.
Some corn is being exported to Bangladesh and South Asian markets at prices ranging from USD 235-240 per tonne Freight on Board (FOB), which is not competitive in the traditional destinations compared to the corn available from other competing origins, the report observed.
The USDA said, "Corn exports are expected to improve in coming months assuming the current price parity of Indian corn vis-a-vis other origins remains unchanged."
There are expectations that domestic prices will ease further with the harvest of winter corn in Bihar and eastern India, where government procurement is not very effective.
Quoting market sources, the USDA report said the Indian government has procured about 4,00,000-4,50,000 tonnes of corn under the minimum support price operation in the states of Andhra Pradesh, Maharashtra and Karnataka.
The last corn procurement of this general magnitude was 3,28,858 tonnes in 2009-10.
Market sources also report a strong demand from the domestic poultry industry since October 2014 on improved consumer demand for poultry products and relatively lower feed prices. Off-take by the starch industry is also strong, the report added.
