January 21, 2025 02:49 pm (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Donald Trump sworn in as 47th president of United States | Kolkata court sentences convict Sanjoy Roy to life imprisonment in RG Kar rape-murder case | Supreme Court stays proceedings against Rahul Gandhi in defamation case over remarks against Amit Shah and BJP | Invasion of our borders will come to a halt: Donald Trump promises crackdown on immigration ahead of inauguration | Kolkata court convicts civic volunteer Sanjoy Roy in RG Kar rape-murder case | Saif was stabbed repeatedly, he tried to protect Taimur and Jeh: Kareena Kapoor Khan records statement with police | Escaped death by 20-25 minutes: Sheikh Hasina alleges opposition wanted to kill her | Cabinet's decision on 8th Pay Commission will improve quality of life, give boost to consumption: PM Modi | 'It has been an incredibly challenging day': Kareena Kapoor Khan requests privacy after Saif Ali Khan's stabbing incident | 'Distorting history': Mamata slams Mohan Bhagwat over his Ram Temple consecration 'marking true independence' remark
Corn
Representational image by CIAT on Flickr via Wikimedia Commons

Ethanol push turns India into top corn importer: Report

| @indiablooms | Sep 05, 2024, at 07:54 pm

Mumbai/IBNS: India's push to make more ethanol made from corn has turned the country, which was Asia's top corn exporter, into a net importer for the first time in decades, squeezing local poultry producers and scrambling global supply chains, Reuters reported.

According to the report, the surge in import demand comes after India in January this year increased the procurement price of corn-based ethanol to drive a shift away from sugarcane-based ethanol for blending in gasoline.

With the Indian government promoting ethanol in gasoline to reduce carbon emissions and trying to ensure ample supply of cheap sugar in the world's biggest market for the sweetener, the South Asian major appears set to become a permanent net importer of corn, reports Reuters.

The prospect of India gearing up corn imports is likely to support global prices which are trading near four-year lows.

Crushed by surging feed costs as local corn prices rise far above global benchmarks, India's poultry producers want the government to remove duties on imports and lift its ban on genetically modified (GM) corn, Reuters reported, adding that the prohibition severely limits their buying options.

The country usually exports 2-4 million metric tons of corn every year, but this year, exports are expected to drop to 450,000 tons while the country is set to import a record 1 million tons, mainly from Ukraine and neighbouring Myanmar, which grow non-GM corn, Reuters reported, citing traders' estimates.

The poultry and starch industries, traditionally, absorbed most of India's corn production of around 36 million tons.

However, in 2013, ethanol distilleries started using corn, and their demand grew this year after the government abruptly curbed the use of sugarcane for fuel following a drought, which led to a shortfall of 5 million tons, Reuters reported, quoting an official with the All India Poultry Breeders Association.

"Now, the poultry and starch industries are battling with distilleries to get their share of supplies, and this fight is keeping prices high," Nitin Gupta, senior vice president of Olam Agri India, told Reuters.

Olam Agri India estimates ethanol distilleries will need 6-7 million tons of corn annually, a demand that Gupta said can only be met with imports.

Traditional export markets such as Vietnam, Bangladesh, Nepal, and Malaysia, which bought corn from India, are now compelled to source supplies from South America and the US, as per reports.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.
Related Videos
Nirmala Sitharaman on Budget 2024 Jul 23, 2024, at 09:30 pm
PM Modi on Budget 2024 Jul 23, 2024, at 09:30 pm
Close menu