Sources say traders sign deals to sell 100,000 tn maize to Bangladesh

Indian traders have signed deals to export around 100,000 tn of maize to Bangladesh, market participants said. The traders are likely to export the maize at $190-$200 per tn, free on board, they said.
Of the total quantity, around 27,650 tn are expected to be exported from Visakhapatnam in a few days, traders said. Traders expect more exports to Bangladesh this financial year as export prices are likely to remain low in the coming days, they said. The average export price of Indian maize is currently $180-$220 per tn, free on board, against $250-$260 per tn last year.
“The export price of Indian maize has been falling as domestic prices of the coarse grain have softened over the past few months,” a market participant said.
Prices have softened over the past few months, despite largely steady output in the kharif season, as bulk demand in domestic markets has remained lukewarm due to large carryover stocks from 2019-20 (Jul-Jun), traders added.
In Nizamabad, a key spot market, maize is being sold at 1,400-1,450 rupees per 100 kg, down from 1,950-2,000 rupees a year ago, local trader Amrutlal Kataria said.
In 2020-21 kharif season, India harvested 19.9 mln tn of maize, against 19.6 mln tn the previous year. The carryover stock in the crop year that ended in June was estimated 30-40% higher at 2.0 mln tn, trade sources said.
Indian exporters have been exploiting opportunities to export maize to compensate for the poor domestic demand, traders said. During Apr-Oct, India’s maize exports were at 922,656 tn, against 166,032 tn in the year-ago period, according to the Agricultural and Processed Food Products Export Development Authority.
“The exports have been increasing as many countries are expecting severe food shortage amid COVID-19 trade blockades,” an official with a multinational firm said.
Indian exporters have been looking for opportunities to export the coarse grain to closer destinations such as Bangladesh, Sri Lanka, and other south and southeast Asian countries, as prices are still competitive, market participants said.
Source: cogencis