Industries upset over govt stand on maize exports

Maize-consuming industries have expressed their disappointment over Agriculture Minister Sharad Pawar's statement that the government had no plans to ban maize exports.

The industries are planning to approach the government with their demand for regulation of exports.

The Rs 38,000-crore poultry industry and the Rs 2,000-crore starch industry are the major sectors which consume maize. Both industries have long been demanding control of maize exports as there is a worldwide shortage and demand from the domestic market is on the rise.

The All India Starch Manufacturers's Association (AISMA) has, in its presentation last year, asked the government to regulate the exports of maize. The National Egg Coordination Committee (NECC) had also approached the government asking for a check on the exports of the commodity.

Amol Sheth, president, AISMA said,"If prices of maize go higher and availability becomes scarce, exports would have to be brought under control."

Kaushik Khona, chief financial officer, Gujarat Ambuja Exports, said, "We will have to be more emphatic in putting our concerns to the government." He added that though the industry could sustain at current rates, anything beyond the present level would burden them.

Anuradha Desai, chairman, NECC said, "The government should channelise the maize exports through public state agencies as prices are going up due to the presence of multi-national companies in the procurement of maize."

The country produced around 13 million tonnes of maize in the kharif season this crop year, up from the output of a little over 11 million tonnes the previous year. Almost 85 per cent of the crop comes in the kharif period.

Former CEO of Venkateshwar Hatcheries and currently the managing director of Pune-based Advanced Bio Agrotech, O P Singh, said, "With this stand of the government, the maize-based industries will be in all sorts of problems."

The industry players said that if exports were not checked immediately, the situation would be similar to that of wheat, where after having exported the commodity, the government was forced to import it at higher costs.

Vishal Majithia, managing director of Mumbai-based Sahyadri Starch, said, "Soon the government will realise the seriousness of the situation. During the off season, there will be no choice but to import maize at higher rates leading to high prices of the finished products."

The near month contract of maize closed on Thursday at Rs 778 a quintal against the previous close of Rs 788 a quintal on the National Commodity and Derivatives Exchange.