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Informist, Thursday, Sep 5, 2024

 

MUMBAI – India's corn (maize) consumption is expected to reach record levels of 37.5 mln tn in corn consumption for the marketing year 2023-24 (Nov-Oct), according to a report released by the US Department of Agriculture's Foreign Agricultural Service. The rise in corn consumption is driven by the government's recent change in the ethanol policy and the growth of the poultry sector, the report said.

 

The agency has now revised upwards the projection for India's corn consumption in the current marketing year to 37.4 mln tn based on better-than-anticipated domestic demand from Indian livestock feed and ethanol processors. India's exports of corn have reduced significantly, while its imports of corn have increased, the report said.

 

The government has limited the conversion of sugar into ethanol to support domestic food consumption, as sugar production in the country is declining, the report said. Sugar is the main feedstock of ethanol. To compensate for sugar in ethanol production, the government raised the procurement price of corn-based ethanol by 29% to 71.86 rupees per ltr in January 2024.

 

The increased domestic demand led to a sharp rise in corn prices, which makes Indian corn exports less competitive in the key export market. The country is a major supplier of corn to South and Southeast Asia, according to the report. Bangladesh, which sourced 78% of their corn imports from India, and Nepal, which sourced 99% of their corn imports from India, are turning to domestic supplies. Vietnam, another key importer of corn from India, is now increasing its corn imports from South America, the report said. 

 

In the current marketing year, India's corn exports to its trading partners are likely to see a drop of 84%, requiring them to adjust to new dynamics in the regional market over the next year. As a result, the country's exports of corn are set to match its imports for the first time since 1999-2000 (Nov-Oct), the report said. 

 

The agency projected that strong domestic consumption of corn in India is expected to continue in the next marketing year.  End

 

Reported by Shreya Shetty

Edited by Manisha Baxla

 

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