The Hindu Business Line : ‘Centre must promote maize cultivation’

Chennai, July 20 India has a tremendous opportunity to export maize (corn), particularly since it is strategically located to cater to West Asia and markets in the Far-Eastern region, according to Amol Sheth, President of All-India Starch Manufacturers’ Association.

If the Centre gives maize due importance and not compare it with other coarse cereals, things could look up, he said in his views on prospects for maize in the Multi-Commodity Exchange’s monthly India Commodity Market Report.< /p>

He said that in view of favourable weather conditions in the country, three crops of maize could be grown every year.

Exports of maize from the US are likely to drop as demand in that country is growing for ethanol, while demand for the cereal is growing worldwide, besides in India.

Mr Sheth said that the growers in the country could go in for wider use of hybrid seeds since the average yield is currently 1.7-2 tonnes, far lower than global average yield of 8-10 tonnes.

According to him, the Centre could allow contract farming of maize, while private industry could educate farmers on adopting better techniques and improving yields.

On the Indian scenario, he said that prices were volatile since maize crop was lower last year at 12.4 million tonnes (mt) against 13.5 mt the previous year; the demand is 14 mt.

Globally, too, prices have been higher in view of a lower crop in the US.

Mr Sheth said demand has grown at 7-10 per cent annually, with the poultry and starch industries being the main drivers.

Maize prices are likely to increase at least by 10 per cent in view of growing demand and short supply, according to Mr K.C. Khona, CFO of Gujarat Ambuja Exports Ltd.

With awareness on corn products in the country increasing, applications of corn are increasing, he said, adding that the demand is expected to grow significantly in the coming years.

Maize currently quotes at Rs 1,050 a quintal. Prices have been ruling at this level since the beginning of the year.