Unrest in Myanmar and superior shipping fees have resulted in South-East Asian international locations and Bangladesh turning to India to meet up with their maize (corn) need for feed uses.

“Vietnam, Malaysia, Bangladesh and Sri Lanka are purchasing maize from India,” said Bimal Bengani, Managing Director of Kolkata-based mostly trading property Bengani Foods Goods Pvt Ltd.

“Malaysia, Vietnam and Thailand are purchasing Indian maize to meet up with the need of the hen and poultry sectors. One motive for these international locations to flip toward India is the unrest in Myanmar arising out of the Army having over the administration there,” said Delhi-based mostly trade analyst S Chandrasekaran.

These orders have occur to India over the past one particular-and-a-50 percent to two months.

“We are acquiring orders from international locations this sort of as Malaysia and Vietnam as our prices are competitive,” said Bimal Bengani.

Cereals carry farm exports to $17.five billion in April-Feb

Competitive prices

Now, maize is staying presented at $250 a tonne (₹18,600) cost-free-on-board (f.o.b). On the other hand, the cereal is presented at $275-277 (₹20,450-twenty,600) price and freight (CNF) to these international locations.

On the Chicago Board of Trade, corn futures are at the moment ruling at $five.89 a bushel (₹17,250 a tonne). According to the Global Grains Council, maize is at the moment exported at $252 (₹18,750) a tonne from Argentina, $260 (₹19,350) from Brazil and $266 (₹19,800) from the US Gulf (all f.o.b).

Corn prices have received approximately 22 for each cent since the beginning of the 12 months, though the IGC maize sub-index has received 60 for each cent 12 months-on-12 months.

“Indian maize exports are competitive since exporters here settle for a reduced 1-two for each cent margin,” said Chandrasekharan.

US planting report propels corn, soyabean better

M Madan Prakash, President of Agri Commodities Exporters Affiliation, said that exporters had been at the moment acquiring maize sent in Chennai from Andhra Pradesh at ₹17,000 a tonne until finally past week-finish.

At several domestic agricultural marketplace terminals, maize is ruling in between ₹1,five hundred-1,700 a quintal dependent on the high quality. This is versus the least assistance cost of ₹1,850 set for this season to September.

“We are also acquiring maize to some extent from Karnataka. We had been acquiring cargo from Tamil Nadu also but the crop arrivals have occur to an finish,” said Prakash, whose Rajathi Group exports agri-goods.

Superior freight price

Yet another motive for Indian maize discovering its way into the South-East Asian international locations is surging freight costs. Traders say that China is at the moment gathering as a lot of containers as probable for all places, together with the European Union and United States.

China wants these containers to both import all its prerequisites or export its goods. Beijing is even having to pay $five hundred for ferrying an empty container to its ports from destinations this sort of as Colombo in Sri Lanka.

“The end result of China mopping up all the containers has left India with the gain of meeting instant need in the South-East Asian location,” said trade analyst Chandrasekaran.

“Malaysia and Vietnam experienced been sourcing maize from international locations this sort of as Brazil, Argentina and Ukraine in addition to Myanmar previously. The container trouble has compelled them to flip to India,” he said.

The trouble for these international locations is that the freight costs for acquiring maize from these international locations is at the moment $55-sixty five (₹4,one hundred-4,800) a tonne. Charges for a container are $five hundred (₹37,200).

“In distinction, freight costs from India are $twenty (₹1,five hundred) a tonne. The costs give these nations an arbitrage of $30-35 (₹2,250-two,600),” said Chandasekaran.

Prakash concurred with Chandrasekharan’s watch on the freight fees.

The latest maize need from these places are temporary and could keep on for a further 6 months, he said.

Bimal Bengani said maize exports to the South-East Asian location would keep on in watch of the competitive costs presented in India.

Chandrasekharan said maize exports had been having place from the east coastline ports of Kolkata and Chennai.

“Maize from Andhra Pradesh and Karnataka’s Ballari and Raichur regions is staying transported from Chennai. From Kolkata, maize from Bihar is sent to South-East Asia,” he said.

Other than, the latest forex exchange fee with the rupee depreciating versus the greenback would also favour maize exports from India.

The Indian rupee hit a nine-thirty day period reduced of seventy five.4 to the greenback previously this week. It has dropped over four for each cent in the past couple of months. On the other hand, it has managed to climb back higher than seventy five to the greenback. On Friday, the rupee was quoted at 74.70 to the greenback, up 23 paise from Thursday.

Exports & Manufacturing

According to knowledge from the Agricultural and Processed Foods Goods Export Advancement Authority, an arm of the Commerce Ministry, India’s maize exports surged to a 6-12 months superior past fiscal.

In the course of April-January time period of the fiscal, 22.03 lakh tonnes (lt) of maize had been exported with Bangladesh accounting for fourteen.seventy five lt. Nepal was the next largest importer, purchasing five.13 lt, though Vietnam purchased 1.eleven lakh tonnes. Malaysia imported approximately fifty,000 tonnes.

Maize exports from India dropped since report shipments of 47.88 lakh tonnes in 2012-13. Considering that then, they have been on a downswing right before the turnaround past fiscal.

The coarse cereal’s exports slipped to below ten lakh tonnes since 2014-15, when 28.twenty five lakh tonnes had been transported out.

According to the Agriculture Ministry’s next advance estimate of manufacturing of foodgrains for this crop 12 months to June, maize manufacturing is most likely to be a report 30.sixteen million tonnes (mt) versus 28.seventy seven mt past crop 12 months.

The export situation is in sharp distinction to 2019 when India experienced to import three.eighteen lt, ten periods the shipments into the state the prior 12 months.

Maize imports are permitted by the Union federal government beneath the tariff fee quota (TRQ) regime at a lower Customs obligation of 15 for each cent. Below TRQ, 5 lt can be annually.

Outside of this, maize imports attract fifty for each cent Customs obligation and an further 5 for each cent Integrated Merchandise and Services Tax and ten for each cent social welfare surcharge.

Unrest in Myanmar and superior shipping fees have resulted in South-East Asian international locations and Bangladesh turning to India to meet up with their maize (corn) need for feed uses.

“Vietnam, Malaysia, Bangladesh and Sri Lanka are purchasing maize from India,” said Bimal Bengani, Managing Director of Kolkata-based mostly trading property Bengani Foods Goods Pvt Ltd.

“Malaysia, Vietnam and Thailand are purchasing Indian maize to meet up with the need of the hen and poultry sectors. One motive for these international locations to flip toward India is the unrest in Myanmar arising out of the Army having over the administration there,” said Delhi-based mostly trade analyst S Chandrasekaran.

These orders have occur to India over the past one particular-and-a-50 percent to two months.

“We are acquiring orders from international locations this sort of as Malaysia and Vietnam as our prices are competitive,” said Bimal Bengani.

Cereals carry farm exports to $17.five billion in April-Feb

Competitive prices

Now, maize is staying presented at $250 a tonne (₹18,600) cost-free-on-board (f.o.b). On the other hand, the cereal is presented at $275-277 (₹20,450-twenty,600) price and freight (CNF) to these international locations.

On the Chicago Board of Trade, corn futures are at the moment ruling at $five.89 a bushel (₹17,250 a tonne). According to the Global Grains Council, maize is at the moment exported at $252 (₹18,750) a tonne from Argentina, $260 (₹19,350) from Brazil and $266 (₹19,800) from the US Gulf (all f.o.b).

Corn prices have received approximately 22 for each cent since the beginning of the 12 months, though the IGC maize sub-index has received 60 for each cent 12 months-on-12 months.

“Indian maize exports are competitive since exporters here settle for a reduced 1-two for each cent margin,” said Chandrasekharan.

US planting report propels corn, soyabean better

M Madan Prakash, President of Agri Commodities Exporters Affiliation, said that exporters had been at the moment acquiring maize sent in Chennai from Andhra Pradesh at ₹17,000 a tonne until finally past week-finish.

At several domestic agricultural marketplace terminals, maize is ruling in between ₹1,five hundred-1,700 a quintal dependent on the high quality. This is versus the least assistance cost of ₹1,850 set for this season to September.

“We are also acquiring maize to some extent from Karnataka. We had been acquiring cargo from Tamil Nadu also but the crop arrivals have occur to an finish,” said Prakash, whose Rajathi Group exports agri-goods.

Superior freight price

Yet another motive for Indian maize discovering its way into the South-East Asian international locations is surging freight costs. Traders say that China is at the moment gathering as a lot of containers as probable for all places, together with the European Union and United States.

China wants these containers to both import all its prerequisites or export its goods. Beijing is even having to pay $five hundred for ferrying an empty container to its ports from destinations this sort of as Colombo in Sri Lanka.

“The end result of China mopping up all the containers has left India with the gain of meeting instant need in the South-East Asian location,” said trade analyst Chandrasekaran.

“Malaysia and Vietnam experienced been sourcing maize from international locations this sort of as Brazil, Argentina and Ukraine in addition to Myanmar previously. The container trouble has compelled them to flip to India,” he said.

The trouble for these international locations is that the freight costs for acquiring maize from these international locations is at the moment $55-sixty five (₹4,one hundred-4,800) a tonne. Charges for a container are $five hundred (₹37,200).

“In distinction, freight costs from India are $twenty (₹1,five hundred) a tonne. The costs give these nations an arbitrage of $30-35 (₹2,250-two,600),” said Chandasekaran.

Prakash concurred with Chandrasekharan’s watch on the freight fees.

The latest maize need from these places are temporary and could keep on for a further 6 months, he said.

Bimal Bengani said maize exports to the South-East Asian location would keep on in watch of the competitive costs presented in India.

Chandrasekharan said maize exports had been having place from the east coastline ports of Kolkata and Chennai.

“Maize from Andhra Pradesh and Karnataka’s Ballari and Raichur regions is staying transported from Chennai. From Kolkata, maize from Bihar is sent to South-East Asia,” he said.

Other than, the latest forex exchange fee with the rupee depreciating versus the greenback would also favour maize exports from India.

The Indian rupee hit a nine-thirty day period reduced of seventy five.4 to the greenback previously this week. It has dropped over four for each cent in the past couple of months. On the other hand, it has managed to climb back higher than seventy five to the greenback. On Friday, the rupee was quoted at 74.70 to the greenback, up 23 paise from Thursday.

Exports & Manufacturing

According to knowledge from the Agricultural and Processed Foods Goods Export Advancement Authority, an arm of the Commerce Ministry, India’s maize exports surged to a 6-12 months superior past fiscal.

In the course of April-January time period of the fiscal, 22.03 lakh tonnes (lt) of maize had been exported with Bangladesh accounting for fourteen.seventy five lt. Nepal was the next largest importer, purchasing five.13 lt, though Vietnam purchased 1.eleven lakh tonnes. Malaysia imported approximately fifty,000 tonnes.

Maize exports from India dropped since report shipments of 47.88 lakh tonnes in 2012-13. Considering that then, they have been on a downswing right before the turnaround past fiscal.

The coarse cereal’s exports slipped to below ten lakh tonnes since 2014-15, when 28.twenty five lakh tonnes had been transported out.

According to the Agriculture Ministry’s next advance estimate of manufacturing of foodgrains for this crop 12 months to June, maize manufacturing is most likely to be a report 30.sixteen million tonnes (mt) versus 28.seventy seven mt past crop 12 months.

The export situation is in sharp distinction to 2019 when India experienced to import three.eighteen lt, ten periods the shipments into the state the prior 12 months.

Maize imports are permitted by the Union federal government beneath the tariff fee quota (TRQ) regime at a lower Customs obligation of 15 for each cent. Below TRQ, 5 lt can be annually.

Outside of this, maize imports attract fifty for each cent Customs obligation and an further 5 for each cent Integrated Merchandise and Services Tax and ten for each cent social welfare surcharge.