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M.R. Subramani

Chennai, July 10 At least two lakh tonnes of maize (corn), for which shipping bills have been filed and which are waiting to be loaded in containers, face uncertainty following a ban on the coarse grain’s export imposed by the Centre, according to a group of exporters based in Tamil Nadu.

The exporters also face problems in view of the different ways in which rules are being followed by the Customs authorities in different ports. As a result, maize exporters scheduled to ship consignments from Tuticorin and Chennai have been badly hit.

“The ban on maize came despite the Commerce Secretary, Mr G.K. Pillai’s statement that there was no such plan. In fact, some of the exporters committed themselves to contracts after this statement,” said Mr M. Rajesh, Managing Director of Rajathi Group of Companies.

According to Mr T.P.S. Ponkumaran, an exporter from Tuticorin, the Directorate General of Foreign Trade, through a notification on July 5, permitted exports of about 1.8 lakh tonnes of maize for which part-loading had been done with “Let Export Order” or for which shipping bills had been filed.

These shipments were allowed from Kakinada, Kandla and Jam Nagar ports and were those of multinational firms such as Cargill, Louis Dreyfus and Starcom. “However, in the case of Chennai and Tuticorin, it has not been allowed. For example, one of our ships was in the queue in Tuticorin on June 27 and another on July 2. By the time they berthed and started loading, the ban came into force. Customs officials are not allowing the exports,” Mr Ponkumaran said.

The case of Alagendran Group of Companies is different. The firm operates from the export processing zones and with a ban on exports, it cannot bring into the domestic market the maize it had bought for sales abroad. “To bring it into the domestic area, we have to pay 30 per cent customs duty,” said Mr A. Rajkumar of the group.

“The Centre should give exporters adequate time before implementing the ban. For instance, in Indonesia, the export tax on crude palm oil is announced one month ahead,” said Mr V. Shanmugham of Vee Shun Exim.

“The Centre could have even clamped an export tax like in the case of iron ore. It would have helped,” said Mr C.V. Narasimha Rayal of another exporting firm, Sri Lakshmi Prasanna Agencies.

With the Centre banning maize exports, Thailand has begun to gain. It now aims to double exports and has increased the prices to $390 a tonne. “We were selling at $300 a tonne f.o.b,” said Mr Rajkumar. “Even in the case of rice, when we banned exports, Thailand gained, hiking the prices to $1,000 a tonne,” said Mr Rajesh.

According to Mr P.S. Nathan of Apoorva Agencies, the Centre should have a fair policy.

A record 25 lakh tonnes of maize have been exported so far this year and contracts have been entered into to ship another 10 lakh tonnes. The Centre banned exports following a hue and cry raised by user industries such as poultry and starch sectors after maize prices began to shoot up. The rise was mainly in view of increase in global prices.

“Farmers got Rs 700 a quintal at the start of the season against the usual Rs 500 and now, they are getting around Rs 900. They could be affected by this ban,” said Mr Rayal.

The record prices for maize has led to an increased maize coverage of three lakh hectares so far this year, according to Mr Shanmugham.

Maize gives good return and is easy to grow. It consumes less water, needs fewer farm workers to attend to the crop and requires less amount of pesticide, according to the exporters.

More Stories on : Foodgrains | Exports & Imports | Tamil Nadu

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