Total production estimated down due to poor monsoon season
The country exported an estimated record 4.8 million metric tons of corn in the 2011–2012 marketing year, while only 3 million metric tons are expected for 2012–2013. Prices on the domestic market were strong in July due to drought and the anticipation of strong exports, but have been slow since September, said the USDA report. They are currently at Rs 11,800 to Rs 14,000 (US$219–260) per metric ton.
According to the USDA, domestic prices are likely to drop even further as new crop arrival accelerates, which would move numbers below the Indian government’s minimum support price of Rs 11,750 (US$218) per metric ton. In addition, due to a poor monsoon season, India’s corn production is estimated to drop from 2011–2012’s 21.57 million metric tons to 20 million metric tons, said the USDA.