January 11, 2024

 

Poultry association presses India to allow import of duty-free corn

 

 

The All India Poultry Breeders Association (AIPBA) demanded on January 8 that India permits duty-free imports of corn to meet the needs of the country's poultry industry amid a rise in grain consumption for ethanol production and insufficient domestic output.

 

AIPBA chairman Bahadur Ali, in a representation to Ministry of Fisheries, Animal Husbandry and Dairying, said ethanol makers' growing demand for corn has also pushed prices skyward, posing a major challenge for Indian poultry farmers.

 

''With maize prices hovering around Rs22-23 (US$0.26-0.28) per kilogramme across India, poultry farmers are grappling with unsustainable costs,'' he said, cautioning that the burden is expected to intensify further by February 2024, which may adversely impact the poultry industry.

 

Against this backdrop, the association said there are two options before the Indian government for addressing the rising demand for corn in both livestock feed and other industries. One option is importing corn and the other is increasing domestic production.

 

''However, significant short-term increase in domestic output is deemed improbable. Therefore, importing maize from other countries emerges as the most viable solution to meet the immediate demand,'' AIPBA stated in its representation.

 

The current basic import duty on corn is 50%.

 

Citing concerns over the rising corn consumption in ethanol production, the association pointed out that India's 34.60 million tonne annual corn production is insufficient to meet the requirements of the Indian poultry industry as well as the nation's food security.

 

As per estimates of the Indian Institute of Millets Research, the poultry and livestock industry consumes more than 60% of India's corn production, AIPBA said.

 

In this context, the government's ambitious plan to generate half of the ethanol from corn by 2025-26 ''may have some serious implications for sectors like poultry and livestock.'' The association said diverting such a significant chunk of current corn production could impact their access to essential feedstock, creating a severe demand-supply gap in the coming years.

 

Additionally, corn production growth over the decade has been at 4.5%, while the poultry industry has experienced a growth of 8-9%.

 

''This disparity highlights the anticipated maize shortage for the poultry industry, particularly in the wake of the government's plan to promote maize for ethanol in a big way,'' AIPBA observed.

 

- Devdiscourse