JAIPUR (Commoditiescontrol) - Slow growth of textile industry may affect the demand for starch. Indian maize starch product has always been attracting good demand from overseas markets and has witnessed consistent growth year-on-year. But rise of an economic crisis in China has raised concern among starch manufacturers in India.
Usually, starch prices are derived from maize rates. Also maize acreage, its yield, stocks followed by minimum support prices (MSP) decided by the government play major role in pricing of starch, said I. K. Sardana, President, All India Starch Manufacturer Association. Of course, starch exports may get affected if its prices are higher in domestic markets compared to overseas. Chinese alternative gives tough fight to the Indian starch industry in International markets and it is gradually occupying the markets of Indian product, he added.
Starch demand in overseas will not remain the same in 2015-16 as it was in 2014-15 because adversity of textile industry is not hidden to any one which will, obviously, affect the demand in starch in domestic and overseas markets as well.
In domestic markets, north Indian based cotton mills' demand for starch is almost negligible as their operations are affected, but mills from western part of the country are, certainly, buying starch in substantial quantity. Starch is mainly used in cotton clothes, while man-made fibre manufacturers’ demand for starch is very limited. Sardana anticipates that starch demand will decline nearly 10 percent in domestic and overseas markets this year compared to previous year. Demand in starch is normal in gulf and African countries, but it has declined in European countries due to economic crunch. Currently, starch is trading in the range of Rs 22,500-23,000 per tonne in north Indian centres.
It should be noted that capacity of Indian starch Industry is 20 lakh tonnes and its capacity has been on constant rise during the past five years. New factories are still getting settled down at several places in the country. But prevailing economic downturn in China and Europe may adversely affect the production and sale of these factories.
This is the reason, most of starch manufacturers are endeavoring to increase their sales in domestic markets. The industry urges the government to stop maize exports so that they can find maize available at reasonable prices.
Maize was trading near Rs 1,200-1,225/100kg two months back, but prices have shot up to Rs 1,350-1,400/100kg now. With rise in maize prices, cost of starch has gone up as well.
However, starch manufacturers say costing depend on several inputs which is difficult to reveal. They urge the government to encourage the farmers for growing good quality of maize which may give better yield as it is seen in the U.S. Starch manufacturers pointed out that old seed gives low yield and recovery of starch also remains low.
Maize Starch Exports At A Glance
| Year |
Quantity (In Tonnes) |
| Year 2015-16 April-May |
3360 |
| Year 2014-15 |
20079 |
| Year 2013-14 |
17845 |
| Year 2012-13 |
14221 |
| Year 2011-12 |
10139 |
| Year 2010-11 |
4883 |
Source: Director General Of Foreign Trade (DGFT)
Maize Exports At A Glance
| Year |
Quantity (In tons) |
| Year 2015-16 April-May |
12299 |
| Year 2014-15 |
282561 |
| Year 2013-14 |
397906 |
| Year 2012-13 |
478832 |
| Year 2011-12 |
385572 |
| Year 2010-11 |
301042 |
(By Commoditiescontrol Bureau; +91-22-40015533)
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