India mulls ban on corn exports

The Indian government is mulling curbs on the export of maize, including a ban, particularly amid demand from the poultry and starch manufacturing sector increasing.

Indian corn prices have surged, driven by high demand, increased exports and some damage to the crop following heavy post-monsoon rains.

“We are staring at massive shortages of corn. That is why we have requested the government to ban corn exports,” Neeraj Kumar Srivastava, Chairman of the Compound Livestock Feed Manufacturers’ Association of India had told Reuters in a recent interview.

“Corn prices have been going up for the past few years but the recent spike has come as a big blow to the industry and that is why we are going through a rough patch,” Srivastava said.

India exported 3.6 million tonnes of corn in 2021, up from 1.9 million tonnes sold in the world market in 2020, according to trade and industry estimates.

Between January and September this year, India shipped out 2.4 million tonnes of corn.

In the world market, Indian corn is priced at US $ 315 a tonne to US $ 320 a tonne against US $ 350 a tonne for rival supplies from Argentina, the world’s biggest corn exporter after the United States.

India supplies corn to countries including Bangladesh, Nepal, Sri Lanka, the United Arab Emirates and Vietnam.