India is to see a record corn harvest in MY 2021/2022 of 32.5mt this year but prices are to remain on the high side.
The feed industry is experiencing a bullish market as recovery in domestic and export demand push up prices. The Russia-Ukraine war has also opened up the market for more Indian corn exports, projected at 3.2mt in 2021/2022. The war has also led to an overall surge in commodities. The USDA projects prices to remain on an upward trajectory for 2021/2022.
High prices discouraging exports
The higher prices will reflect negatively on exports for MY 2022/2023. Exports for next year have been lowered to 2.4mt as a result.
Indian corn is mainly making its way to neighboring countries such as Bangladesh, Vietnam, Nepal, and other South Asia destinations. For now, “The Ukrainian crisis has spurred a global surge in corn prices, making Indian corn now highly competitive in the region.”