September 1, 2004

India's Poultry Industry Worried About Fall In Corn Supply

Farmers in India's Tamil Nadu are increasingly worried over the availability of corn, which is the main feed ingredient for the Rs 1,000-crore poultry.

Corn shortage and the consequent price surge were seen in India for the past two weeks. This has pushed up the production cost for both the layer and broiler producers.

The latter being the high volume feed consumers is the worst hit.

"Corn stocks from Karnataka, the main supply source for the southern poultry, are almost going empty. Thus the availability of the cereal has become the big question for the poultry farmers," said Mr B. Soundararajan, Managing Director of the poultry major Suguna Poultry Farms.

He stated that although the new corn crop season is just a month away, many are currently finding it difficult to get the required corn. Prices have shot up to Rs 7000-7400 per ton as compared against the Rs 6,000 plus price band last year. The soaring corn price has in turn lifted the per kg broiler production cost this year to Rs 31 from Rs 26 in the previous year, he added.

According to Mr Soundararajan, most poultry integrators and major poultry farmers in the State are now struggling on the raw material front.

Even as the production cost for broilers continues to surge, the farm-gate selling price of the live-birds has failed to improve.

The selling price continues to stagnate at Rs.26 - Rs.27 per kg at several production centres.