Government bans maize export to check price rise news
03 July 2008

Mumbai: The government has banned the export of maize till 15 October to increase availability in the domestic market and check prices of corn, poultry and other products as it battles inflation that hit a 13-year high of 11.42 per cent.

The ban, announced through a commerce ministry notification, will remain in force till 15 October by when the new crop will be harvested.

Maize prices have gone up by 40 per cent to Rs970 per quintal in July from Rs700 per quintal in January despite bumper crop in 2007-08.

Government has already banned exports of wheat, non-basmati rice, edible oil and pulses.

Rising global demand because of diversion of maize for bio-fuels, particularly in the US, has had an impact on the domestic prices as well, traders said.

Corn is used as poultry and livestock feed, besides by the starch industry, which together require about 12 million tonnes per annum.

With India being the sixth largest supplier of corn in the world, the decision to ban exports would weigh on the international market, they said.

The country exported 2.5 million tonnes in 2007-08 as compared to a small quantity of just over half a million tonnes last year.

"The increase in exports left an impact on the availability and prices in the domestic market," Ram Nivas Mangla, Delhi-based manufacturer of poultry feed said.

Export demand was mainly coming from buyers in Pakistan, Australia and Middle-East because of the differential between Indian and the US prices.

Maize is available in India at almost half the prices in the US.

The poultry farmers and starch manufacturers have been demanding check on exports to curb the domestic price rise.

The user industries would need 3.5 million tonnes before arrival of the next crop, he said.

Corn is mainly a Kharif crop (June-September) in India. However, some states grow it even during Rabi season (October-December).

Prospects for the coming season are good with expectations of Kharif production going up by 15-20 per cent to 18 million tonnes.

The winter crop will add to the stocks. The government will review the stock and prices situation in October.


 search domain-b
  go
 
Government bans maize export to check price rise