The poultry and starch sectors, the two major maize consumers, heaved a sigh of relief today as the government banned maize exports. Together they consume 90 per cent of the maize produced in the country and had been seeking curbs on exports since December last.
According to Anuradha Desai, chairperson, National Egg Co-ordination Committee (NECC), the industry estimated that by October price of an egg in the retail market will reach Rs 4 a piece, but now it will be around Rs 3.50. "It should come down further by March next year," she said.
Industry sources said the move will help the prices of maize come down by Rs 30-70 a quintal from the current price, which is inching closer to Rs 1,000 a quintal. The country, which never exported more than 1 million tonnes of maize, was poised to export 3 million tonnes of maize this year.
The Rs 2,000-crore starch industry had warned that if maize exports were not contained, they would cut their capacity utilisation.
"The ban is more than what we had asked for. This will ensure availability of maize and we will not curtail production as planned earlier," said Amol S Sheth, president, All-India Starch Manufacturers' Association.
"Maize prices could come down by Rs 500-700 a tonne. Currently, our factory landing price of maize is Rs 960 a quintal, which we hope will reach Rs 900 a quintal," added Sheth. However, he did not say whether starch rates will see the cuts in prices percolating down.
The worst-hit Rs 40,000-crore poultry industry will now be comfortable but the export ban till October did not satisfy the industry.
Anuradha Desai further said: "We would like to have this ban extended till March. The industry does not want to see the same story being repeated in the later part of the year when fresh crops start hitting the market and the private players once again take the undue advantage as was happening till date."
"At a time when major growers such as Argentina and Brazil have stopped exports why should India export. Out of the 18 million tonnes of maize production projected this year, the poultry industry alone needs 15 million tonnes," said Desai.
Reacting to the government's announcement, the near month futures contract on the National Commodities and Derivatives Exchange slipped over 4 per cent to Rs 931 a quintal against the previous close of Rs 970 a quintal.
Commodity analysts said export was the only factor which brought the bull run in the market. "Now with the imposition of ban on exports, the prices are expected to come down to Rs 850 a quintal level," they said.
