Date:30/12/2008 URL: http://www.thehindu.com/2008/12/30/stories/2008123051430300.htm

Karnataka

Maize trade in doldrums in Davangere

H.S. Narasimha Kumar

Last year, 110 rakes of maize was exported, this year it was 25 per cent of it

DAVANGERE: As many as 40,406 wagons (roughly 110 rakes) of maize was exported from Davangere last year but this year not even 25 per cent of that was exported though abundant quantity of maize was produced. This is said to be the impact of the economic recession.

Maize production in Davangere, which is one of the main maize producing centres of the State, was over 7.75 lakh tonnes this year. It was grown in an area of 1,75,656 hectares of land this year. The total production of maize last year was 8.36 lakh tonnes and the total area under maize cultivation was 1, 99,228 hectares.

Traders who buy maize from the farmers export the crop to various places, particularly Tamil Nadu. From there the by-products of maize are exported to several countries, including the U.S.

But the demand for maize has reportedly come down considerably and the reason for it has been attributed to the economic recession. This year, from April, only 24 rakes of maize were exported till December-end.

Traders suffered losses as many companies that placed orders for maize this year, did not honour their agreements. They instructed the traders not to send the produce till they placed the orders afresh. The companies had written to the traders saying that there was a sharp decline in the demand for maize. The traders who had bought maize worth crores of rupees suffered huge losses.

In addition, there was no proper warehouse where the crop could be stored and sold as and when there was demand.

The Railways which made a whopping collection of Rs. 21.6 crore last year for transporting maize, also suffered revenue loss.