Maize is a highly sought-after crop worldwide due to its versatility and demand across various industries. The maize trade has become a significant and growing industry globally, driven by the increasing need for animal feed, ethanol production, and food products. The United States of America (USA) is currently the largest producer and exporter of maize globally, contributing to over 30% of the world’s maize exports. Other major maize-exporting countries include Brazil, Argentina, Ukraine, and South Africa. In our previous blog, we learned about the maize production in India. Today, we will delve into India’s maize trade in greater detail.
Increasing maize trade in India
Over the past few years, India has experienced a significant increase in maize trade, fueled by population growth, urbanization, and evolving dietary patterns and lifestyles. The animal feed industry, which accounts for over 60% of global maize demand, is one of the largest consumers of maize. Furthermore, there is growing momentum for maize due to the increased consumption of meat, dairy, and poultry products in emerging markets such as India, China, and Southeast Asia.
The rise in maize trade can also be attributed to its use in the production of ethanol, which is a biofuel used to reduce dependence on fossil fuels and mitigate the impact of climate change. Maize is a key component of ethanol production and its demand has surged in recent years. The United States of America (USA) is the world’s leading producer of ethanol, with maize accounting for over 90% of its production.
India’s maize industry has experienced significant growth in recent years due to increasing demand from animal feed and starch industries, as well as government support and the adoption of modern agricultural practices. Despite this growth, the industry still faces several challenges, including low yields, poor quality, and inadequate infrastructure.
Maize is a vital crop in India, and its cultivation is prevalent in several states such as Karnataka, Andhra Pradesh, Madhya Pradesh, Maharashtra, Rajasthan, Uttar Pradesh, Bihar, and Telangana. To address the challenges faced by the industry, the Government of India has launched several schemes aimed at promoting the adoption of modern farming practices and investing in infrastructure and logistics. Additionally, the government provides subsidies and incentives to maize processors and exporters, helping to stimulate the growth of the industry.
Indian maize export
India has emerged as a significant exporter of maize to countries such as Vietnam, Malaysia, Indonesia, Bangladesh, and Nepal, primarily due to the high demand for animal feed. With the increasing demand for maize in these countries, it is expected that India’s maize trade will continue to grow at a rapid pace. In fact, it is projected that India will export around 4-5 million metric tons of maize grain in 2023.
To leverage this growth potential, Indian maize suppliers have opportunities in markets such as Southeast Asia, the Middle East, and Africa. However, to be competitive in the global market, suppliers must focus on improving the quality of their maize and ensuring timely delivery to their customers. This requires improving the efficiency of operations, paying attention to the latest trends and developments in the industry, and adhering to international trade regulations and standards.
Challenges in maize trade
While the trade of maize in India is increasing, the challenges associated with it are also increasing. The biggest challenge is the quality of maize grain produced in the country. India is facing issues of aflatoxin contamination in maize which can harm the health of animals and humans. Another challenge is the lack of proper infrastructure for the storage and transportation of maize.
Many farmers and suppliers in India do not have proper storage facilities due to which there is a high possibility of spoilage of maize crops. In addition, transportation of maize grain can be difficult in rural areas where roads are not up to the mark. Having proper infrastructure for the quality, storage, and transportation of maize is no less than a challenge. If you are a maize trader or supplier, here is the ‘Bijak Vyapaar’ app to make your maize trade easy.
In Bijak Vyapaar, you can add your grain products including maize to the watchlist and track their latest rates. This will help you in determining the right selling price for grains. On this app, you can also know the news related to grains in the ‘News’ section. So without further delay download the Bijak Vyapaar App now.
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