May 30, 2012

India's corn oil meal demand to surge on growing poultry industry

The demand for poultry feeds like corn oil meals and others likely to surge in near future on the back of growing poultry industry in India.

The Indian poultry industry is estimated at US$3.6 billion with production estimated at around three million tonnes and chicken meat production grew from 939,000 tonnes in 1999-2000 to three million tonnes in 2011-12 at a Compound Annual Growth Rate (CAGR) of 10%. With this growth rate in poultry industry in India the demand for poultry feed is also on rise.

Wheat corn soymeal and other oil meals are preferred as poultry feed in India. India produces around 21.33 million tonnes of corn in the 2011-12 crop year and for 2012-13 is revised upwards to 22 million tonnes. Wheat production is expected to be around 90 million tonnes for 2011-12. In India's National Commodity and Derivative Exchange (NCDEX) for June delivery corn traded up 0.79% to INR1,143 (US$20.4) per quintal wheat down 0.6% to INR1,166 (US$20.8) per quintal on Tuesday May 29 at 12:55 IST.

India is the fourth largest producer of Chicken meat in the world after US, China and Brazil.