India corn meal export landscape is undergoing significant changes, influenced by rising domestic demand and intensifying global competition. Traditionally a major supplier of corn and its derivatives, India is now facing challenges that are reshaping its position in the international market.
Surge in Domestic Demand
Several factors have contributed to the escalating domestic consumption of corn:
Ethanol Production Initiatives: In an effort to reduce carbon emissions, the Indian government has prioritized corn-based ethanol production. The goal is to achieve a 20% ethanol blend in gasoline by 2025-26, leading to increased corn utilization in the energy sector
Livestock Feed Requirements: The burgeoning poultry and dairy industries have heightened the demand for corn as a primary feed component. Projections indicate that corn consumption for animal feed will rise from an average of 15.393 million metric tons (MMT) in 2020-2022 to 19.383 MMT by 2032, reflecting an annual growth rate of 2.33%.
Indian maize is widely used in animal fodder due to its high nutritional value, providing essential energy, proteins, and carbohydrates for livestock. It is cost-effective and easily digestible, making it a preferred choice for cattle, poultry, and aquaculture feed. Additionally, India’s abundant production ensures a consistent and reliable supply for global markets.
Impact on Export Capacity
The intensified domestic demand has had a pronounced effect on Indias corn exports:
Declining Export Volumes: From the 2020-21 to 2023-24 marketing years, corn exports have plummeted by approximately 86%. This decline is attributed to the need to satisfy internal consumption, thereby reducing the surplus available for international markets.
Livestock Feed Requirements: For the first time since the 1999/00 marketing year, Indias corn imports are projected to match its exports. This shift underscores the pressing domestic demand and the challenges in meeting it solely through local production.
