NEW DELHI (Commoditiescontrol) - Looks like maize prices in India are going to have a tough time ahead as Canada has decided to test all Indian shipments of maize, including organic maize for aflatoxin.
The action has been decided after high levels of aflatoxin detected in organic feed maize from India. Maize prices are already reeling under pressure due to lower demand and higher availability at global level.
According to market talks, the Canadian Food Inspection Agency (CFIA) will, with immediate effect, detain all incoming shipments of maize imported from India, including organic maize. CFIA has justified the action saying that this is to prevent contamination of livestock feed in order to protect Canadian livestock and public health.
Importers must sample the imported maize, including organic maize, once arrived at Canada and provide test results to CFIA. The sampling must be done immediately after arrival at the Canadian destination as mould can grow and produce aflatoxins during shipping. Shipments will only be released once an original laboratory result (Certificate of Analysis) demonstrates that the shipment meets the acceptable aflatoxin levels. As per standard of Canada, aflatoxin level should not exceed 20 parts per billion.
A Delhi-based exporter, Mr. Vineet Khurana told commoditiescontrol.com that there are there are indeed such talks in markets, adding that such a development would be negative for maize exports from India.
Although, he says that Canada is not a major market for Indian maize. Only around five percent of Indian maize gets exported to Canada. But then, Indian maize is facing poor demand and glut like situation in international markets.
According to market sources, Indian maize export declined around 30 percent during the last financial year 2014-15. Current maize prices all over the world are not favourable for export, hence hurting exports from India. At present, global maize prices are hovering at around $175-187 per tonne, while Indian maize is being offered at $210-220 per tonne. According to Agricultural & Processed Food Products Export Development Authority’s (APEDA) figures, India exported around 27.93 lakh tonnes maize worth Rs. 3,918 crore. While in 2013-14, the country has earned Rs. 5,983 crore from 39.5 lakh tonnes maize export.
Poor exports dampened maize prices in domestic markets. Maize prices lost Rs. 200/100kg in the last 2-3 months. According to a weekly report of U.S. Grain Council, spot prices over the last one week at Gulabbagh were down 0.95 percent to Rs.1,105/100kg. Prices quoted by farmers are down at Rs.1,050-1,080/100kg. While in Nizamabad, prices fell 0.47 percent to Rs.1,293/100kg. Though, prices in few other markets gained during the same period due to various local factors.
Union Ministry of Agriculture has estimated India’s maize production at 227.40 lakh tonnes in 2014-15. Last year, the production was was seen at 243.5 lakh tonnes in the country.
(By Commoditiescontrol Bureau; 91-22-40015533)