October 26, 2010

 

Indian poultry prices rise on festive season

India's broiler prices are once more on the rise because of the steady demand amid the festive season.

 

Traders and analysts said chicken prices are expected to rise further during next few weeks because of steady demand in winters.

 

Poultry industry sources said that the wholesale price of live weight broiler in Delhi region has increased from INR48 (US$1.08) a kg prevailing a month back to INR65 (US$1.46) a kg a present. Correspondingly, the retail price of dressed chicken has gone up from INR120 (US$2.7) a kg to INR140 (US$3.15) a kg at present.

 

The broiler prices declined last month because of floods in many parts of rural Uttar Pradesh, Haryana and other northern states, which forced the poultry farmers to release excess stocks into the market.

 

"We anticipate rise in poultry prices further during next few weeks," said Ricky Thaper, Poultry Federation of India's (PFI) treasurer.

 

Meanwhile, due to sudden increase in exports of soymeal, a key ingredient in the poultry feed, its wholesale price has gone up to INR17,000 (US$382.88) per tonne on Saturday (Oct 23) from INR16,100 (US$362.61) per tonne in September. At the same time, corn price has remained stable at INR11,000 (US$247.75) per tonne during last few months because of expectations of a bumper harvest.

 

Due to rise in soymeal, the feed price has increased to INR18,000 (US$405.41) per tonne against INR17,000 (US$382.88) a tonne in September.

 

According to Solvent Extractors' Association (SEA), the country's oilmeal exports rose by 53% in September on improved availability for crushing and a rise in the free-on-board realisation.

 

SEA data shows that total exports surged to 3.54 lakh tonne compared with 2.31 lakh tonne in the corresponding month of the previous year.

 

Of the total oilmeal exports, soymeal exports were to the tune of more than 2.9 lakh tonne while rest comprised of rapeseed meal and groundnut meal. The country had exported 2.31 lakh tonne oilmeal in September 2009.

 

"From last two months due to expectation of a better oilseed output, farmers have been releasing their stocks for processing," BV Mehta, executive director, Solvent Extractors' Association of India (SEA) had said.

 

Meanwhile, the wholesale egg prices continued to remain flat during last few week because of less consumption during last few weeks.

 

The egg consumption in Tamil Nadu and other states such as Maharashtra, Karnataka and Andhra Pradesh has started to pick up slowly with the austere festivities coming to an end. However, again during Diwali, the rise in consumption may take a beating, fear poultry industry sources. In Delhi, the retail prices have remained stable at INR40 (US$0.9) a dozen for the last few months.

 

"Consumption of poultry meat will increase in the coming winter months as poultry meat is preferred and production is also lowest for chicken," said Thaper.

 

There is a huge scope for the growth of poultry industry in India as per capita consumption is only 2.4 kilogrammes per person per annum much below the world average.