October 8, 2013
India''s 2013 corn output may reach 25 million tonnes
Boosted by adequate monsoon rains which triggered higher acreage across growing states, India''s corn production this year is likely to touch a record 25 million tonnes.
According to data available from the Union Ministry of Agriculture, as of October 2, the area under corn has risen by 11% to 822,400 hectares against 740,000 hectares in the corresponding period last year
Higher than normal rains across major corn growing states such as Andhra Pradesh, Karnataka, Maharashtra and Madhya Pradesh are likely to further push up rabi acreage this fiscal.
According to the first advance estimates of Ministry of Agriculture, corn production is expected at 17.8 million tonnes compared with 16 million tonnes, according to the fourth estimates for 2012-13.
"Corn production is likely to surpass all records this year. We expect bumper crop as kharif production may cross 18 million tonnes by the time the Ministry comes out with second advance estimates, as the first estimates are usually very conservative," Raju Choksi, Vice-President (Agri-Commodities), Anil Nutrients Ltd said.
Last year, rabi production stood at around 6.25 million tonnes despite bad monsoon and so this year, rabi production too is likely to be higher.
Due to scarce supply in the market, corn prices have been firm since the last couple of months. With kharif crop likely to arrive in the markets from next fortnight onwards, the prices are expected to fall by 7-10%, Choksi said.
Prices will also be impacted because of higher global supply which may further increase following record crop in Argentina, Brazil and the Black Sea Region, which are major exporters to world markets.
India is currently out priced in the international markets as Indian corn is being offered at US$270-275/tonne as against the Ukrainian variety being sold around US$235/tonne, he said.
Corn has been trading in the range of INR1,500-1,600 (US$24-26) a quintal, much above the minimum support price (MSP) of INR1,175 (US$19) fixed by the government last year. This year, the government has fixed MSP of INR1,310 (US$21), higher by about 11% compared to last year.