India's poultry prices decline on cheaper feed

India's domestic poultry industry is relieved as drop in soymeal exports in the last six months has stabilised poultry prices just ahead of summer season, when demand for non-vegetarian food usually falls.

Poultry industry sources said wholesale prices of live weight broiler or chicken in Delhi has declined marginally by INR8 (US$0.18) per kg in the last two months largely due to fall in feed prices.

Poultry feed prices which largely comprises of soymeal and corn has declined from INR19,000 (US$420) a tonne to INR17,000 (US$376) per tonne in two months.

Traders said poultry prices have started moderating because of steep decline in soymeal exports as compared to last year over reports about bumper harvest in Brazil and the US.

According to data released by the Indore-based Soy Processors Association (SOPA) last week, soymeal exports in February had dropped by 43% to 2.1 lakh tonnes against 3.8 lakh tonnes during the same month last year.

Many countries including China, Europe, Malaysia and Middle East did not place any order for Indian soymeal last month.

"Stable feed prices would also help in keeping prices of chicken and eggs during the coming summer months," Ricky Thapar, spokesperson for Poultry Federation of India (PFI) said.

Out of 6.5 million tonnes of soymeal, 3.2 million tonnes are supplied to domestic livestock feed and the rest is exported.