February 4, 2009

Indian poultry farmers has asked to bring soymeal and corn under the Essential Commodities Act (ECA), in order to keep a check on the prices of these commodities to an affordable level.

The National Egg Coordination Committee (NECC) - the apex body of country's poultry farmers - said that the soymeal and corn are the most crucial ingredients of poultry feed, but hoarding and speculation by traders has led to abrupt rise in the prices of these commodities.

According the NECC, soymeal prices are ruling at Rs 21,000 to Rs 23,000 a tonne, which a couple of months ago had softened to Rs 10,000 - 12,000 a tonne.

NECC added that price of corn raised to Rs 1,000 a quintal from Rs 600-650 a quintal a year ago.

NECC also said this unprecedented and unjustifiable increase has happened due to forward trading in corn, speculation and hoarding by traders and multi-national companies and exports.

NECC chairman, Anuradha Desai said the break-even level for egg production has gone up from Rs 0.90-1.00 to Rs 2.25 an egg whereas that of broilers has increased to Rs 47-48 per kilogramme from Rs 27-28.

Many poultry farm owners are running short of working capital due to the losses incurred by them in the last two years which resulted in the closure of around 15 percent of the industry, consisting mainly of small and marginal farmers.

US$1 = INR48.54 (Feb 4)