March 28, 2022

India's poultry production affected by rising maize and soy prices

Vignesh Soundararajan, managing director of major Indian poultry firm Suguna Foods, said rising prices of maize and soy has resulted in increased production costs for the poultry sector this year, The Hindu reported.

Prices for maize have increased above 50% in the past six months, while soy prices have soared from INR 35-40 (~US$0.46-0.53; INR 10 = US$0.13) per kg to INR 65-70 (~US$0.85-0.92) per kg in the last one year. Livestock feed accounts for 80% broiler chicken production costs.

Vignesh said the domestic poultry industry grows 8% year-on-year, but soaring feed costs in 2022 means broiler producers cannot pass on the entire cost to the consumers.

He expects maize and soy prices to drop in October to November.

R. Lakshmanan, chairman of India's Broiler Coordination Committee, said broiler production costs in the current financial year are between INR 75-95 (~US$0.98-1.18) per kg, with the average farmgate price at INR 90 (~US$1.18) per kg. He said the wholesale selling price had only gone up last month.

-      The Hindu