May 4, 2009
India's poultry sector shrinking on high feed costs
Thousands of smaller poultry farmers are closing down in Andhra Pradesh as they struggle with high input costs, particularly feed.
K.V.S. Subba Raju, Hyderabad Zonal Chairman of the National Egg Coordination Committee (NECC) said there was a 100-percent increase in feed cost since 2008.
A tonne of soy now costs Rs25,000, up from Rs12,500-Rs13,000 in October-November last year, while corn support price to be paid is now Rs800 after taxes, also nearly double from Rs450-500 about two years ago, Raju said.
Rising prices of poultry feed ingredients are forcing thousands of small poultry growers to close down, he said.
Feed prices have become a major factor of daily uncertainty facing the industry in Andhra Pradesh, Raju said.
A farmer needs Rs60 for a kg of broiler to achieve breakeven level, but the current-day price of Rs58 per kg is making the business unsustainable, which would lead to lower output of eggs and chickens, Raju said.
The current cost of producing an egg by a farmer was Rs2.25, while it was sold for Rs1.76 after deducting the middleman commission.
As a solution to this crisis, the government should immediately ban forwarding trading in corn and soymeal, since it was being indulged in by speculators who blocked their movement by resorting to hoarding, according to Raju.
US$1 = Rs49.5766 (May 4)
