India’s maize exports in FY24 drop to 4-year low at 14.42 lakh tonnes on increased home costs

India’s maize exports fell to a four-year low within the 2023-24 interval, experiencing a 58 p.c decline in quantity. This drop was resulting from increased home costs and a diminished crop, coupled with rising demand from ethanol, poultry, and starch producers.

The nation’s maize exports declined to 14.42 lakh tonnes throughout 2023-24 from the earlier yr’s 34.53 lakh tonnes as per the official information with giant patrons akin to Bangladesh and Vietnam decreasing their off-take and shifting to different cheaper origins.

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In greenback worth phrases, India maize or corn exports slipped by 60 per cent to $443 million through the interval from the earlier yr’s $1116 million. In rupee worth phrases, the exports declined 59.2 per cent to ₹3660 crore from the earlier yr’s ₹8987 crore.

Vietnam was the biggest purchaser of Indian maize throughout 2023-24 with purchases at over 6.88 lakh tonnes. Nevertheless, the exports to Vietnam had been down by about 23 per cent from the earlier yr’s 8.91 lakh tonnes. Nepal was the second largest purchaser of Indian maize throughout 2023-24 with purchases of some 3.78 lakh tonnes. Exports to Nepal through the yr had been down by 3.3 per cent from earlier yr’s 3.91 lakh tonnes.

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Bangladesh, the biggest patrons of Indian corn within the latest yr diminished its purchases sharply with the Indian costs not being aggressive in comparison with international costs. Exports to Bangladesh fell sharply by about 88 per cent throughout 2023-24 to 2.08 lakh tonnes from the earlier yr’s 17.09 lakh tonnes.

Commerce sources mentioned Indian maize has not been aggressive on this planet market resulting from increased home costs and because of this the exports have come to a halt. Additionally, the rise in home demand from sectors akin to poultry, starch and ethanol mixing fuelled the demand for maize within the native market.

As per the second advance estimates maize crop for 2023-24 is seen decrease at 324.70 lakh tonnes down from earlier yr’s 380.85 lakh tonnes, which features a summer time crop output of 27.21 lakh tonnes.

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Kharif maize output throughout 2023-24 was down at 227 lakh tonnes over earlier yr’s 236.74 lakh tonnes, whereas the rabi season output was estimated decrease at 97.50 lakh tonnes over earlier yr’s 116.9 lakh tonnes. Dry climate circumstances and erratic rainfall triggered by the El Nino circumstances had impacted the maize crop output in key producing states akin to Karnataka and Bihar amongst others.