Lower corn, soy exports to keep Indian poultry feed prices in check

 

 

The forthcoming summer months, when demand for poultry products usually goes down, should not perturb farmers as falling corn and soymeal prices - the two key constituents of poultry feed - will keep their input cost also down.

 

Poultry industry sources said with steep decline in exports of soymeal, the wholesale prices in Delhi have come down to Rs16,700 per tonne from Rs19,000 a month back.

 

According to data released by the Soyabean Processors Association of India (SOPA), India's soymeal exports dropped to a five-year low of 2.1 million tonne in 2009-10 from 4.2 million tonne last year due to sluggish global demand.

 

Similarly, corn prices in the wholesale markets have also remained stable at Rs11,000 per tonne over expectations of a bumper harvest.

 

As a result of which poultry feed prices have also stabilised at around Rs17,000 per tonne in the last two months and farmers anticipate that prices might decline further in the next few weeks.

 

Poultry feed comprises of around 70% of the total cost of production of eggs and chicken. Total feed consumption in poultry industry in India is around 15 million tonnes at an estimated value of Rs15,000 crore.

 

In the last few years, volatility in feed prices had been hitting poultry farmers hard.

 

Meanwhile, the wholesale live weight broiler chicken prices in Delhi has stabilised at around Rs65 a kg at present down from Rs68-70 per kg three months back. Correspondingly, retail prices have also been in the range of Rs120–130 per kg.

 

The wholesale egg prices also have declined to Rs2 per piece as against Rs2.35 per piece two months back.

 

However, an official from the National Egg Co-ordination Committee (NECC) said that besides stable feed prices, prompt action taken by the government against spread of bird flu has also helped industry.