Looking to Corn Importers ? India has started importing maize, or corn, duty-free from Myanmar, a neighbour. In Thoothukudi, Tamil Nadu, at VO Chidambaranar Port, at least three vessels have already anchored, and several more are scheduled to do the same by the end of July. Imports were made at $268 per tonne at first, but costs have since gone up. "We have brought in one shipment from Myanmar," stated Sanjay Sancheti, Country Head of Olam Agro India Ltd., in response to a message. When asked if imports were $268, he responded that the cost had increased.
Import Duty For Other Origins
Among the foreign trading companies supplying the coarse cereal to the nation is Olam. In addition to a 10% social welfare surcharge and a 5% IGST, the Customs Department levies a 60% levy on corn imported from any other nation. Tariff rate quota (TRQ) imports are permitted by the Center, but, at a concessional 15% charge. Under TRQ, 5 litres of corn imports were permitted in 2020.
If maize can be reexported as starch imports which, based on the agreements inked, might total around three lakh tonnes, may be duty-free. The official clarified that the first ship made of maize was intended for starch production while the second was for the manufacture of ethanol. On his part, he has sourced corn from Bihar for his needs.
Import parity
Trade sources reported that the poultry industry, ethanol producers, and starch manufacturers have a healthy demand for corn. In contrast to the lowest support price of ₹2,090, the average weighted price of maize throughout the Agricultural Produce Marketing Committee (APMC) yards nationwide is currently ₹2,091 per quintal. On the other hand, they are ruling higher at more than ₹2,400 in a few APMCs in Madhya Pradesh, Tamil Nadu, Telangana, Maharashtra, and Karnataka. Its costs were ₹1,700 at this time last year.
Corn July contracts on the Chicago Board of Trade are trading at $4.49 per bushel ($176.76 or ₹14,775 a tonne). According to Subramanian, "imported maize is needed to meet the rising demand."
Mulling Gm Corn Imports
The country's corn needs have been rising, with the poultry industry alone requiring an extra 1 million tons annually. Its demand is currently projected to be 16 mt. Particularly this year, since the Center outlawed the use of the juice of sugarcane in the production of ethanol, there has been a rise in demand for maize from the ethanol industry. It is anticipated that the ethanol sector will use 3.4 mt of maize this fiscal year, up from 0.8 mt the previous fiscal year, and eventually reach 10 mt by 2027–2028.
Once ethanol production companies, especially in Bihar, started importing maize, the representative from the foreign trading company stated that the supplies will probably arrive at ports in Visakhapatnam or Kolkata. According to a Businessline article dated May 31, the Center is thinking about permitting the import of GM (genetically modified) maize at a reduced import duty, if not duty-free, in order to make up for the shortage caused by the nation's growing demand.
Conclusion
In conclusion, growing local demand within the starch, ethanol, and broiler industries is met by India's duty-free imports of corn from Myanmar. The starting price per tonne was $268, but expenses have gone up. Unless they are subject to a subsidised tariff rate quota, imports from other nations are subject to substantial duties. Demand is predicted to soar, resulting in possible imports exceeding almost 3 lakh tonnes, mostly for ethanol production and starch re-export. In order to fill shortages, the government is also thinking of importing genetically engineered grain.
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