Demand For Corn Wet Milling Products Huge

There is a high potential of growth for the corn wet milling industry because of the changing lifestyles of the Indian population. The demand for ready-to-eat food is increasing, in which corn wet milling products are used extensively, says Amol Sheth, managing director of Anil Products, in an interview with Devendra Vyas. Excerpts:

What is the present status of the maize starch market? How do you anticipate future growth?

There is a bigger market for corn wet milling products in western and the northern India, which accounts for more than 70 per cent of the total demand. At present, the market is crowded with small regional players and co-operatives, mainly in Maharashtra. However, these co-operatives are not able to make full use of their capacities due to the high investment involved, cost over-runs and weak marketing infrastructure.

 

The demand for the products is growing at 7 per cent a year, but there is scope for more growth.

In India, the corn wet milling industry is worth Rs 700-750 crore. Products manufactured by the corn millers include starches, modified starches, corn syrups, dextrose monohydrate, dextrose anhydrous, polyols, gluconates, enzymes, etc. The major end-user industries for corn wet milling products are textiles, paper, pharmaceuticals, food and confectionery, adhesives, dyes, chemicals and feeds. Of which, textile, food, paper and pharmaceuticals account for around 80 per cent, and the others account 20 per cent of the total consumption.

This industry had a phenomenal growth in the US and Europe due to new applications and growth in the end-user industry. Today, the corn wet milling industry is one of the major contributing factors to the US economy.

The growth potential of the industry is also high because of the increasing demand for ready-to-eat food, in which corn wet milling products are extensively used. This will also increase the demand for paper used as packaging material. Also, the increasing demand for high-quality cotton fabrics will increase the demand for starches.

What are the uses of corn wet milling products?

Corn wet milling products are present in some form or other in various day-to-day products. For example, sorbitol is used in toothpastes, modified starches in mosquito repellents, starch is used as a binding agent for tablets, thickening agents for sauces and soups, and for sizing and finishing of textiles fabric. Modified starches are used in the paper industry for sizing, coating and increasing the strength and brightness of paper. Corn syrup, or liquid glucose, is used as sweetener in candies, bakery products and sweets, and as a carrying agent in cough syrup formulations.

What is the export scenario for the corn wet milling industry?

Exports account for a very small percentage of the total turnover of the corn wet milling industry. Export of corn wet milling products are mainly to Africa, West Asia and the Far East. There is a huge demand for corn wet milling products in these countries. At present, this demand is met by European countries.

How do you see the post-GATT scenario vis-