Commerce and Industry Minister Kamal Nath today said the government was "open to" putting a ban on maize exports. |
"We are open to it," said Kamal Nath, when asked whether the government is mulling a ban on maize exports after the recent spurt in prices. |
"The agricultural ministry is looking into the data to see if there is a fall in the output this year," he said. |
Maize prices in India and abroad have been soaring on the back of a global supply crunch. India's maize output is likely to be lower this year. |
According to the government's first advance estimate, the country's kharif maize output is likely to fall to 11.43 million tonne this year from 12.17 million tonne last year. |
Domestic consumption has been pegged at 14 million tonne in 2006-07, well above the production estimate. |
According to the US Department of Agriculture, global maize output in 2006-07 (Jul-Jun) is likely to fall to 688 million tonne, down 5 million tonne from last year, in the wake of lower-than-expected output in US and Romania. |
Global maize consumption, however, is projected at a record high of 723.3 million tonne in 2006-07 compared with 698.7 million tonne in 2005-06, owing to high feed and industrial demand. |
Maize prices on the Chicago Board of Trade touched a 10-year high of $3.72 a bushel on November 9. |
In India too, maize for December delivery on the National Commodity and Derivatives Exchange has gone up Rs 100 in the last one month and was currently trading at Rs 810 per 100 kg. In spot markets, where prices generally move between Rs 500 and Rs 600, maize was traded at Rs 720-725 in Nizamabad. |
Traditionally, India exports maize to Bangladesh, Sri Lanka and Nepal. This year, however, there is a heavy demand from Indonesia and Malaysia also. Maize is a very important crop for the Indian economy due to its direct and indirect use in more than 30 industries. It is used by poultry industry, starch manufacturers, livestock (cattle feed), and corn-based snacks units, besides being consumed directly by humans. Industries such as textile, paper, pharmaceutical, food and confectionery, and personal care products use it indirectly. Association heads have been clamouring for an export ban in wake of rising prices and an anticipated fall in output. |