Home Nepal stock Vietnamese scouts for Indian corn; Bangladesh, Nepal buying good volumes

Vietnamese scouts for Indian corn; Bangladesh, Nepal buying good volumes

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India is receiving good demand for its maize (maize) from Vietnam although it continues to export good volumes to Bangladesh and Nepal, which source more coarse grains from New Delhi than other sources, according to India. traders and exporters.

“We started to receive good demand from Vietnam as prices started to moderate,” said Madan Prakash, president of the Agri Commodities Exporters Association.

According to data from the Agricultural and Processed Food Export Development Authority (APEDA), grain exports, mainly maize, more than doubled to 1.52 million tonnes (mt) worth of 2,848 crore during the April to August period of the current fiscal year. During the same period a year ago, shipments were 0.72 mt valued at 1,177 crore.

Viable option

The US Department of Agriculture has fixed India‘s corn exports at 3.5 t during the marketing year from October 2020 to September 2021. “In 2020-21, high world prices for corn, supported by the sharp decline in Brazilian production due to drought and reduced stocks in the United States, have made Indian corn a viable option in the world market, “he said.

“The Kharif harvest is reported to be good. As a result, prices fell as the new crop started to arrive, mostly from South India, into the market. Prices have fallen to 19,000-20,000 per tonne for delivery to Chennai, ”Prakash said.

Prices are currently 18,500-18,750 toll-free in Chennai. According to the International Grains Council, Argentinian corn is priced at $ 242 (18,715 yen) per tonne free on board, Brazil at $ 272 (20,500 yen) and the United States at $ 270 (20,350 yen). Year over year, corn prices are at least 20% higher on the world market.

Bihar source for Bangladesh

“We export maize to Bangladesh at around 21,000 per tonne via the land borders between India and Bangladesh, like Petrapole,” said Mukesh Singh, director of MuBala Agro Commodities Pvt Ltd.

Most of the maize exported to Bangladesh comes from Bihar and to some extent Uttar Pradesh. “We are getting offers from Maharashtra that are priced low between 15,000 and 16,000 yen, but logistics are a problem,” Singh said.

In July of this year, when corn prices soared in the world market and exceeded wheat prices for the first time in 10 years, India quoted production at 23,150 yen per tonne free on board.

Next, Chicago corn futures for July delivery were listed at $ 6.66 per bushel (19,600 yen per tonne). Currently, December contracts are set at $ 5.32 per bushel (15,850 yen per tonne).

Biggest importer

APEDA data shows that between April and August, Vietnam became the largest importer of Indian maize, purchasing more than 0.6 t, while Bangladesh bought 0.43 t and Nepal 0.25. t.

“During July-September, exporters who had old crop stocks with them were shipped to Vietnam at a cost and freight of $ 310-20,” ACEA’s Prakash said.

A business analyst said Vietnam bought more corn from India in the past six months. “Vietnam will continue to buy to meet its food needs. Almost all countries buy from the global market, ”the analyst said.

The USDA has said skyrocketing freight prices is another reason Indian corn has made its way to Southeast Asia. “Global ocean freight rates have increased rapidly due to higher Chinese demand for agricultural products, resulting in congestion at Chinese ports, delays and lower availability for ships,” the USDA said.

Peak freight rate

Previously, Malaysia and Vietnam sourced maize from Brazil, Argentina and Ukraine. But, a container shortage and skyrocketing freight rates all forced them to look for alternative suppliers. “This has allowed Indian exporters to meet unmet demand as a supplier with a price advantage,” USDA said, noting that Indian corn has traditionally not been competitive in the world market.

The main reason Indian maize is not competitive in the world market is that the Center sets a minimum support price (MSP) for coarse grains. For the current campaign (July 2021-June 2020), the MSP is 1,870 per quintal against 1,850 last year. Currently, maize is quoted in various yards of the Karnataka Agricultural Products Marketing Committee (APMC) at more than 1,500 per quintal. Prices are at least 200 higher than last year.

High humidity

An import-export manager at a multinational firm said Vietnam’s current investigation may sometimes not result in India securing orders. “Vietnam will start to inquire when our new crops arrive. Finally, we need a call based on the competitiveness of our price. In the past, Vietnamese buyers had retreated, ”said the official, who declined to be identified.

Vangili Subramania, president of the Tamil Nadu Poultry Farmers Marketing Society, said corn prices have started to drop due to the arrival of the new crop. “The harvest in Karnataka is good, although the humidity is currently 20 to 22 percent. We will know the state of the crops in Tamil Nadu towards the end of this month. He said, adding that an accurate picture of the harvest price will only be available in January-February.

Prakash also said that the humidity of the Karnataka crop that is currently arriving at the APMC yards is high.

Despite these developments, the USDA estimates that corn exports will fall by more than 50% this marketing year (October 2021-September 2022) to 1.7 mt. He also forecast India’s maize crop to drop to 30 mt from 30.5 mt a year ago.

According to the Ministry of Agriculture, Indian kharif maize production is estimated at 21.24 t against 21.44 t last year (by fourth anticipated estimate). The production of rabi maize for the last crop year was set at 10.7 mt.


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