July 11, 2008

India's ban on corn export has given hope to the embattled poultry sector in Andhra Pradesh.

Poultry farmers are hoping that the export ban would help to lower feed cost after the industry was hit hard by bird flu in West Bengal. The ban has an instant impact on corn prices in India, which fell by Rs 1,000 from Rs 10,000 per tonne within two days. 

Before the corn harvest, corn prices were at Rs 7,500 per tonne.

K. Varahala Raju, zonal chairman of the National Egg Coordination Committee (NECC) said prices shot up due to exports but now the farmers are hoping it would drop drastically.

The industry is hoping that the 800,000 tonnes of corn stranded at Kakinada, Chennai, Mumbai and Kandla ports would be diverted to the open market. India produces 18.5 million tonnes of corn, of which the poultry industry consumes 10-11 million tonnes. Corporate firms also pile up a huge quantity of corn for future trading.

Andhra Pradesh accounts for 50 percent and 10 percent of the 120 million layer birds and 200 million broilers, respectively, in India. Corn is the major poultry feed, representing 50-60 percent of feed cost.