January 7, 2008

India's poultry sector calls for export ban on corn and soy

India's poultry industry is urging the government to ban corn exports, charging that exporters are hoarding it for speculation.

Instead of private traders, poultry organisations are calling for state agencies such as the state trading corporation to undertake exports.

Clarifying their stand, the National Egg Coordination Committee said the industry was not opposed per se to corn exports but it only wanted ban on exports by private trade as hoarding has led to unreasonable price increases.

India's corn prices nearly doubled over the past year from Rs 500-550 a quintal in 2005-06, to a 35-year-high of Rs 800-900. A quintal is about 50 kg. 

However, rising prices did not benefit growers but in fact had gone into the pockets of middlemen through forward contracts, the organisation charged.

Meanwhile soymeal prices at Rs 15,500, are near double their prices three months ago as a global shortage led to more Indian exports. This has caused a sharp drop in profits for India's poultry farmers, who rely on it primarily for feed.

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.