Maize market in Southern Asia

Earlier Report Observations

From 2018 to 2020, maize production and market volume grew steadily, supported by ongoing agricultural market reforms. The implementation of the electronic National Agricultural Market (e-NAM) and a rising Minimum Support Price (MSP) for maize, which grew faster than for other staples, incentivized farmers to expand cultivation. Government schemes like the National Food Security Mission and Rashtriya Krishi Vikas Yojana provided subsidized seeds and training, encouraging the adoption of high-yielding and drought-tolerant varieties. These measures, coupled with increasing demand from the poultry feed and industrial sectors, fueled the market's expansion.

Growth continued through 2021 and 2022, with domestic maize prices rising approximately 20% due to strong demand from the poultry industry and the government's push for ethanol production from maize. This price incentive, alongside sustained policy support for productivity improvement, kept production on an upward trajectory. The global supply disruption caused by the Ukraine-Russia conflict introduced volatility but also underscored the importance of domestic production, further solidifying government and private investment in the maize sector.

In 2023, the total market volume declined despite record production, as a significant drop in imports coincided with a rise in exports. This shift in trade flows occurred while domestic output remained robust, supported by long-term initiatives aimed at increasing the crop area and yield per hectare. The market also saw diversification with the development of new product segments like baby corn and sweet corn, promoted through state and central schemes to create additional value and market opportunities for farmers.

Production maize in Southern Asia

In kind, 2017-2020, K t

Top producers of maize, 2017-2020

World map of production of maize, 2017-2020

Maize production in Southern Asia has increased for the third consecutive year. In 2020, the region produced 47 873 thousand tonnes of maize, marking an 11.4% rise from the previous year. Between 2017 and 2020, production grew by 21.2%, which translates to an annualized growth rate of 6.6%.

Annual dynamics of production in Southern Asia in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Maize production in Southern Asia has increased for the second consecutive year. In 2020, the output was valued at 9 993 million US dollars, remaining relatively stable compared to 2019. Over the period from 2017 to 2020, production value rose by 12.8%, corresponding to an annualized rate of 4.1%. The lowest value was recorded in 2018 at 8 053 million US dollars. The largest decline occurred in 2018, with a drop of 9.1%, while the largest increase was in 2019, at 24.0%.

Annual dynamics of production in Southern Asia in value, 2017-2020, M $ US

Exports maize from Southern Asia

Exports in kind, K t

The market showed an unstable trend throughout the period. Export volumes reached their lowest point in 2018 at 7 thousand tonnes and peaked in 2019 at 195 thousand tonnes, representing a 27-fold difference. In 2020, Southern Asia's maize exports amounted to 70 thousand tonnes, a decrease of 64.3% from the previous year. The largest decline was recorded in 2018 at 74.9%, and the largest increase occurred in 2019, surging by 2,599.0%.

Annual dynamics of product's exports from Southern Asia in kind, 2017-2020, K t

From 2017 to 2020, maize from Southern Asia was exported to numerous markets. Even the top destinations—Vietnam, Malaysia, and Somalia—collectively accounted for only 22.4% of total exports in volume.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Southern Asia in kind, 2017-2020

Exports in value, M $ US

The market exhibited an unstable trend over the timeframe. Exports hit their lowest point in 2018 at 1 million US dollars and peaked in 2019 at 45 million US dollars, a 33-fold difference. In 2020, maize exports from Southern Asia reached 15 million US dollars, down by 67.9% compared to the previous year. The largest decline was in 2018 at 78.4%, while the largest increase was in 2019, rising by 3,156.4%.

Annual dynamics of product's exports from Southern Asia in value, 2017-2020, M $ US

During 2017–2020, maize exports from Southern Asia in value terms were relatively evenly distributed. Vietnam (11.6% of export value), Malaysia (7.9%), and Somalia (1.0%) together represented only 20.5% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Southern Asia in value, 2017-2020

Imports maize to Southern Asia

Imports in kind, K t

In 2020, Southern Asia's maize import volume amounted to 12 570 thousand tonnes, showing a significant increase of 13.4% from the previous year. Between 2017 and 2020, imports grew by 36.4%, equating to an annualized rate of 10.9%. The largest decline was recorded in 2019 at 1.5%, while the largest increase occurred in 2018, rising by 22.0%.

Annual dynamics of product's imports to Southern Asia in kind, 2017-2020, K t

From 2017 to 2020, key suppliers of maize to Southern Asia included the United Kingdom (14.2% of import volume), Switzerland (12.7%), and Brazil (12.5%). However, their combined share reached only 39.3% of total imports, with the remaining 60.7% distributed among many other partners.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Southern Asia in kind, 2017-2020

Imports in value, M $ US

In 2020, foreign maize supplies to Southern Asia totaled 3 150 million US dollars, a 16.9% increase compared to 2019. Over the period 2017–2020, imports rose by 48.6%, with a compound annual growth rate (CAGR) of 14.1%. The largest decline was in 2019 at 0.9%, and the largest increase was in 2018, up by 28.2%.

Annual dynamics of product's imports to Southern Asia in value, 2017-2020, M $ US

During 2017–2020, maize imports to Southern Asia in value terms were spread relatively evenly. The United Kingdom (14.2% of import value), Switzerland (12.2%), and the Netherlands (10.7%) together accounted for only 37.1% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Southern Asia in value, 2017-2020