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Maize shipments boom in 2021-22, top $1 billion

Maize shipments boom in 2021-22, top $1 billion

Maize (corn) exports from India rose sharply to top $1 billion in 2021-22 after a gap of seven years.

Shipments touched a nine-year low of $142 million in 2019-20 before staging a sharp rebound in the past two years on rising demand for coarse cereals from South and Southeast Asian countries such as Bangladesh, Vietnam and Malaysia.

According to data from the Agricultural and Processed Food Products Export Development Authority (APEDA), maize shipments stood at $1.02 billion for 2021-22 – up 61 percent from the previous fiscal year’s $63.4 million.

Short supply from South American producers such as Argentina and Brazil in the past two years has worked in favor of Indian exporters, resulting in higher demand from consuming countries in Southeast Asia such as Vietnam and Malaysia.

sluggish demand

India’s maize export has increased from 3.7 lakh tonnes (lt) in 2019-20 to 36.90 lt in 2021-22. In the current fiscal, though shipments during April were up 21 per cent to 2.51 liters compared to the same period last year, sluggish demand from Bangladesh and Vietnam and South American producers – Brazil and Argentina.

Bangladesh has emerged as the largest buyer of Indian maize in the last two years, displacing Nepal. Bangladesh, which bought less than 10,000 tonnes from India in 2019-20, bought more than 1.5 million tonnes in the last two financial years.

Similarly, Vietnam – which bought 1,893 tonnes in 2019-20 – increased its procurement from India to 4.98 liters in 2020-21. In addition, Vietnam more than doubled its procurement to 11.8 million tonnes in the last fiscal. Malaysia, which procured around 1.12 liters during 2020-21, more than doubled its procurement to 2.66 liters during 2021-22, while Nepal also increased its procurement to 5.87 lakh tonnes.

competitive turn

According to the third advance estimate, India’s maize production has increased from about 21.76 million tonnes in 2011-12 to over 33 million tonnes in 2021-22 over the past decade. For the current kharif crop season, the Center has set a target of 23.10 million tonnes of maize production, which is higher than the 22.65 million tonnes produced during the season last year. The MSP for maize has been increased to ₹1,962 per quintal for 2022-23 as against ₹1,870 in the previous year.

“Indian maize became competitive during 2020-21 following the spread of COVID, which led to a reduction in demand in the domestic market. At the same time, inclement weather reduced supplies from South America, affecting production in the region, resulting in higher demand from Vietnam and Malaysia among other countries,” said Indrajit Paul, Senior Manager Commodity Research at Origo e-Mandi Told.

Paul, however, said that demand from Bangladesh and Vietnam has slowed in the current fiscal, which may result in lower shipments. “We expect maize shipments to drop by half a million tonnes this year,” Paul said.

Published on

22 June 2022

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Maize shipments boom in 2021-22, top $1 billion

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