October 1, 2009

 

Poultry feed prices in India have declined during last few weeks due to significant reduction of soymeal prices during the last one month, in anticipation of a bumper soy crop this year. 

 

Soymeal prices, a key component of poultry feed, in the wholesale market in Delhi declined to Rs 17,200 (US$361.20) per tonne on Tuesday (September 29) from Rs 18,700  (US$392.70) per tonne prevailing a month back, a drop of nearly 9 percent. Industry source said prices might fall further after the new crop enters the market over the next few weeks.

 

Similarly, corn prices has stabilised around Rs 10,200 per tonne at present while it rose to more than Rs 11,800 per tonne a month back. Soymeal and corn are the key ingredient of poultry feed. Consequently, feed price has fallen to around Rs 17,000 per tonne from Rs 19,000 per tonne a month back, a decline of close to 12 percent.

 

According to the Soy Processors Association of India (SOPA), soy production would be around 9.7 million against 9.5 million achieved last year. This year, better yield is expected from Madhya Pradesh as crop in Maharashtra's Vidarbha region has been affected due to deficient rainfall.

 

Due to the lower international prices of soymeal, the exports also may be affected, which in turn would ensure supply to poultry industry.

 

Ricky Thaper, spokesperson, Poultry Federation of India said lower feed prices along with rise in demand for poultry products after Navaratras, would help the farmers, who had been adversely impacted by the volatility in the feed prices.

 

A senior official with Directorate of Maize Research, under the Indian Council for Agricultural Research, said due to recent rains and introduction of single cross hybrids, the kharif corn production in the country is expected to achieve last year's production of 18.5 million tonne. Kharif crop constitute about 80 percent of the total corn production.

 

According to ministry of agriculture data released on September 10, corn acreage has increased to 7.03 million hectares from 6.95 million hectares achieved last year.

 

Poultry industry sources said broiler prices in the North has increased from Rs 68 per kg live weight against Rs 58 per kg prevailing a month back. With the demand for poultry products set to increase during the next few weeks, farmers have geared up for higher sales.

 

India ranks fifth in world broiler production with an estimated output of 2.3 million tonnes per annum. However, there is a huge scope for the growth of poultry industry as the country's per capita consumption is only 2.4 kilograms per person per annum.

 

US$1 = INR47.61 (Oct 1)