India’s booming corn exports amid global rally ease supply worries

India has stepped up corn exports as a rally in global prices to their highest since 2013 has made shipments from India competitive, easing concerns about rising food inflation in Southeast Asia.

Indian exporters have signed deals to sell around 4,00,000 tonnes of corn for shipment in June to July to animal feed producers in Vietnam, Malaysia, Sri Lanka and Bangladesh, according to two Singapore-based feed grain traders.

Cheaper corn supplies from India would keep the cost of animal feed lower for consumers of meat and chicken in Asia, who are among the most vulnerable to high food prices.

Benchmark Chicago corn futures have more than doubled since August on rising Chinese demand and declining production in key exporter Brazil. In early May, prices hit their highest since March 2013 at over $7 a bushel.