Market Profile - India

India Markte Snapshot

Supply/Demand Basics

  • World’s fourth largest feed producer (after China, U.S., Brazil).
  • World’s largest dairy herd.
  • Big swings in monsoon weather creates production risk and stifle investment.
  • Two main growing seasons - kharif and rabi - with kharif seeing 66% of the production.
  • Large  and sophisticated starch sector caters to India’s textile industry.

Country Overview

  • Population: 1.237 billion
  • Population growth: 1.19%
  • Urban %: 32.7%
  • Urban growth: 2.38%
  • GDP: $7.965 trillion
  • GDP growth: 7.3%
  • GDP per capita: $6,200
  • Predicted to be the most populous country by 2022.
  • Women’s average age of first childbirth is under 20 years old.
  • 47% o f the country’s population is under 24 years old.
  • Demonetization efforts negatively impacting economy.

Trade and Market Share Issues

  • Industrial corn/starch industry expected to grow by 5% to almost 2.8 MMT.
  • Potable alcohol industry consumes around 1.25 MMT of corn and rising.
  • A rising and major importer of U.S. industrial grade ethanol.
  • World’s worst air quality is creating momentum for more fuel ethanol blending.
  • National corn yield exceptionally low at 2.5 mt/ha.
  • Ease of doing business is low due to India’s notorious bureaucracy, but it is improving.
  • 2016 year over year gasoline consumption growth at 12%.

Policy Issues

  • Bt cotton is widely accepted and adopted.
  • Corn import TRQ allocations (500 TMT) are slow and ineffective, 50% out of quota duty.
  • No effective mechanism to approve transgenic varieties (GEAC).
  • Minimum support price (MSP) policy for corn.
  • Illegal to blend domestically produced grain alcohol into fuel.
India Supply Demand