Pakistan offers corn cheaper than India in global market

NEW DELHI: Pakistan has emerged as a strong competitor to India in the global corn (maize) market, offering its produce at over $20 a tonne cheaper than India in the global market, especially South-East Asia, an Indian media outlet reported.

“Pakistan is offering corn at $282 (PKR44,200) a tonne, cost and freight, Ho Chi Minh in Vietnam. This is lower than the price quoted by any Indian trader,” said a New Delhi-based trading source, speaking on condition of anonymity. The source said Pakistan traders were making the offer as the neighbouring country looks to export at least one million tonnes of corn this year.

Currently, corn futures are quoted at $6.59 a bushel on Chicago Board of Trade. China’s huge appetite, strong US sales and Brazil shipping woes have all lifted corn prices this year. The cereal has gained over 35 per cent since the beginning of this year.

“We are offering corn to South-East Asia at $305 (PKR47,700) a tonne. But demand has slowed due to quite a few reasons,” said M Madan Prakash, Agri Commodities’ Exporters Association President. Compared with India and Pakistan, Brazil is offering corn at $295 (PKR646,22) and US at $306 (PKR47,900) a tonne free-on-board (FOB) with prices increasing by 63 per cent and 90 per cent, respectively, from a year ago.