Surge in India corn consumption shifts regional market dynamics

Published 2024년 9월 4일

Tridge summary

India is set to reach a record corn consumption of 37.4 million tons for marketing year 2023/24 due to the government's ethanol policy and the growth of the poultry sector, leading to a decrease in corn exports and an increase in imports. The government has limited the conversion of sugar into ethanol, resulting in a 29% increase in the procurement price of corn-based ethanol in January 2024. This has caused corn prices to surge, making it less competitive in the export market. As a result, India's corn exports are expected to decrease by 84% and its corn imports are expected to match its exports for the first time since the 1999/00 marketing year.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

India is expected to reach record corn consumption of 37.4 million tons for marketing year (MY) 2023/24 (Nov-Oct). This increase is driven by the government’s ethanol policy and the growth of the poultry sector, which have significantly reduced corn exports and led to higher imports. To support domestic food consumption amid declining sugar production, the Indian government has limited the conversion of sugar into ethanol, which is its main feedstock. In January 2024, to compensate for this loss, the government raised the procurement price of corn-based ethanol by 29%, bringing it to INR 71.86 (about $0.86) per liter. As a result of rising demand, corn prices have surged above those of its competitors, affecting export levels. India, traditionally a major supplier to South and Southeast Asia, is expected to export 84% less corn this year. For the first time since the 1999/00 marketing year, India’s corn imports are set to match its exports. Countries like Bangladesh and Nepal, ...

Source: USDA