Maize exports are likely to increase by 7% to three million tonnes in the ongoing 2011-12 marketing year on adequate supplies and expected higher demand owing to competitive prices.
The country had shipped 2.8 million tonnes of maize in the 2010-11 marketing year (October-September).
"So far, we have exported one million tonnes of maize and we will be able to ship a total of three million tonnes by the end of the year," an industry source said.
The demand for Indian maize from southeastern countries is likely to pick up as prices are lower by $40-60 per tonne as against that of the US corn, sources said.
Maize prices in the US are quoting higher on an expected decline in its production. As a result, it makes sense for south-eastern region to buy from India, they added.
Last month, the US Department of Agriculture (USDA) had said in its Grains Report: "Indian corn (maize) is very competitive in the South Eastern market with prices in the range of $240-245 per tonne on CIF (Cost, Insurance and Freight)."
On domestic supplies, market sources said that total output would be adequate to meet the local and export demand.
The country's maize production might touch 21 million tonnes in the 2011-12 crop year (July-June), marginally lower than 21.28 million tonnes in the previous year. The production is expected to be lower in both Kharif (summer) and rabi (winter) seasons, but it is adequate to meet the demand.
Much of the export of maize goes to South East Asia and the Middle East. That apart, maize is also used in the domestic market by starch, poultry and alcohol industries.
Currently, the wholesale prices of maize are ruling at Rs 1,250 per quintal in the national capital.
According to the International Grains Council, despite a smaller the US crop and a worsening outlook for South America, total global maize output in 2011-12 is forecast to increase by four% to a record 961 million tonnes.
