Ban on maize export ends

Written by Commodities Bureau | Agencies | New Delhi, Oct 15 | Updated: Oct 16 2008, 06:36am hrs
The ban on maize exports lapsed on Wednesday with the government deciding against extending it any further, a senior commerce ministry official said here. The ban was imposed on July 3 this year.

"Since it is not extended, it lapses on Wednesday," an official with the Directorate General of Foreign Trade told PTI.

This virtually means that from now onwards exporters will be able to export maize without any restrictions.

India annually exports around 0.5 million tonne to 1.0 million tonne of maize mostly to south-east Asian nations, however, in 2007-08 (Oct-Sep) exports surged to around 2.5 million tonne to 3.0 million tonne due to good prices in the international markets.

Consequently, prices of maize in the local surged to over Rs 9,500 per metric tonne calling for a ban on exports from the poultry industry that are the direct consumers.

As a result government had banned export of maize in July up to October 15 in the backdrop of runaway inflation. However, since then maize prices both in the local and international markets fell.

Corn prices have shed almost 49% in Chicago Board of Trade than its record of $7.9925 on June 27. Sources said with the new crop due to be harvested in the next few weeks, the government was under immense measure to lift the ban on exports as that would have deprived farmers of remunerative returns.