Govt not to ban maize exports

The ministry of commerce has made it clear that the export of maize cannot be banned. The All India Starch Manufacturers' Association had a meeting with Commerce Secretary G K Pillai here and the secretary indicated that "export of maize cannot be banned". However, there is some scope for duty concessions in imports which needs to be discussed with the finance ministry.

The association had made a representation to the commerce secretary on its concerns about the availability of maize.

"Though the secretary stated that export cannot be banned, he has indicated the possibility of reduction in import duty or renewal of quota for maize imports," said an association member.

"There was a quota on import of maize that allowed import up to 4 lakh tonne on actual user basis at 15 per cent duty. Any quantity above that would attract a 60 per cent duty. However, the quota provision lapsed in July and was not renewed.

Now, any import would attract a 60 per cent duty," said the association president Amol S Sheth.

The association wants the government to allow import of maize after fixing a ceiling price to protect the Indian farmers. If anyone imports maize below the domestic ceiling price, the differential may be charged as duty from the importer.

The prices of maize have increased from about Rs 600 a quintal last year to over Rs 750. Maize futures at the National Commodity & Derivatives Exchange (Ncdex) is currently ruling at a high of Rs 788 a quintal (December delivery) and Rs 825 (March delivery). Internationally too, maize prices are ruling high and with freight cost and duty, import is not feasible.

The country's maize production is likely to be lower this year.

According to the government's latest advance estimate, India's kharif maize output is likely to fall to 11.43 million tonne this year compared with 12.41 million tonne in the previous year.

The rabi crop maize is being sown and the area as on November 24 stood at 5.14 lakh hectare as against 4.58 last year. But rabi accounts for just about 10 per cent of total maize production. The domestic consumption is estimated at 14 million tonne in 2006-07.