Corn giant India slaps ban on exports

By Thomas Kutty Abraham  |   2008-7-4  |     NEWSPAPER EDITION

India, the world's sixth-biggest corn supplier, banned exports of the grain to boost domestic supplies and curb inflation that has accelerated to a 13-year high.

The ban, effective from yesterday, will be in force until October 15, the directorate general of trade said on its Web site yesterday, Bloomberg News reported.

Record raw material prices have stoked inflation globally, prompting governments to take measures to safeguard supplies of food staples. Indian Prime Minister Manmohan Singh's government has restricted exports of rice, wheat and cooking oils to ensure domestic supplies are adequate.

Indian corn exports probably totaled a record 2 million tons in the year ended June as feed makers in Southeast Asia sought cheaper alternatives to supplies from the US. Exports were just 400,000 tons last year. Shipments may reach 1.5 million tons in the year beginning October, the US Department of Agriculture said on June 10.

Corn futures for December delivery dropped 0.1 percent to US$7.795 a bushel in after-hours trading on the Chicago Board of Trade. Earlier, prices fell as much as 1.6 percent. Futures traded on India's National Commodity & Derivatives Exchange Ltd in Mumbai fell by the daily limit. Corn for July delivery fell 4 percent to 931.50 rupees (US$21.5) per 100 kilograms at 2:03pm Mumbai time yesterday.