Coimbatore: The poultry industry, alleging that private traders and exporters have cornered huge quantity of maize (corn) for speculation, has demanded the Government to ban all maize exports by private trade. It has instead urged the channelising of the maize exports through State agencies such as state trading corporation.
Not opposed per se
The National Egg Coordination Committee, seeking export restriction on maize on behalf of the poultry industry, said the industry was not opposed per se to maize exports but it only wanted ban on exports by private trade, which in the garb of exports had chosen to hoard the stocks to speculate in the forward markets. This led to unreasonable increase in the prices, affecting the 3.2 million people engaged in the poultry farming in the country.
Steep increase
The Committee said during the past one year, maize prices recorded an increase of about 90 to 100 per cent. From an average price of Rs 500-550 a quintal in 2005-06, maize price rose to Rs 800-900 and in some North Indian centres, it had gone up to as high as Rs 1,000 per quintal. Stating such steep increase had never been witnessed in the last 35 years, it said the poultry industry was used to having the maize price ruling lower at all harvesting season.
Growers don’t gain
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The poultry sector would not complain if the rising maize price had benefited the growers because it would have come as an incentive to the nearly two crore growers to produce more. The recent price surge did not benefit the growers and had shores up the middlemen and the trade which, by covering the stocks at lower rates, jacked up the rates taking advantage of the forward trading route. Though the volume of maize exports may be insignificant compared to the total production of about 130 lakh tonnes, still it affected the market sentiment.
Soyameal dearer
Added to this, the price of soyameal, another essential feed ingredient – particularly for broiler feed – has also increased from about Rs 8000 to Rs 16,000-17,000 per tonne in the past three months, due to the attributed global shortage and consequent surge in export.
With feed cost accounting for 75 per cent of the cost of production for the poultry growers, even a small rise in feed cost would upset the economics of poultry growers. A 10 per cent rise in feed cost will erode the poultry farmers’ profitability by 87 per cent.
Break-even costs
Due to the feed ingredient cost increase, the break-even level for broiler producers has gone up from Rs 27-28 per kg to Rs 33-35 and in the case of layers, the production cost had increased from Rs 0.90/Re 1 to Rs 1.45-155 an egg.
Non-availability and high price of these most important feed ingredients was now threatening the very survival of poultry farmers, NECC said.
Not opposed per se
The National Egg Coordination Committee, seeking export restriction on maize on behalf of the poultry industry, said the industry was not opposed per se to maize exports but it only wanted ban on exports by private trade, which in the garb of exports had chosen to hoard the stocks to speculate in the forward markets. This led to unreasonable increase in the prices, affecting the 3.2 million people engaged in the poultry farming in the country.
Steep increase
The Committee said during the past one year, maize prices recorded an increase of about 90 to 100 per cent. From an average price of Rs 500-550 a quintal in 2005-06, maize price rose to Rs 800-900 and in some North Indian centres, it had gone up to as high as Rs 1,000 per quintal. Stating such steep increase had never been witnessed in the last 35 years, it said the poultry industry was used to having the maize price ruling lower at all harvesting season.
Growers don’t gain
• Check out our Yearender Special
The poultry sector would not complain if the rising maize price had benefited the growers because it would have come as an incentive to the nearly two crore growers to produce more. The recent price surge did not benefit the growers and had shores up the middlemen and the trade which, by covering the stocks at lower rates, jacked up the rates taking advantage of the forward trading route. Though the volume of maize exports may be insignificant compared to the total production of about 130 lakh tonnes, still it affected the market sentiment.
Soyameal dearer
Added to this, the price of soyameal, another essential feed ingredient – particularly for broiler feed – has also increased from about Rs 8000 to Rs 16,000-17,000 per tonne in the past three months, due to the attributed global shortage and consequent surge in export.
With feed cost accounting for 75 per cent of the cost of production for the poultry growers, even a small rise in feed cost would upset the economics of poultry growers. A 10 per cent rise in feed cost will erode the poultry farmers’ profitability by 87 per cent.
Break-even costs
Due to the feed ingredient cost increase, the break-even level for broiler producers has gone up from Rs 27-28 per kg to Rs 33-35 and in the case of layers, the production cost had increased from Rs 0.90/Re 1 to Rs 1.45-155 an egg.
Non-availability and high price of these most important feed ingredients was now threatening the very survival of poultry farmers, NECC said.
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