May 13, 2008

NECC requests Indian government to assist poultry industry

India's National Egg Coordination Committee (NECC) has requested the government to ban corn and soy trade and to channelise these exports through a government agency to put a ceiling on export volumes.

NECC is also requesting the government to extend an interest subsidy of 8 percent on bank loans used by poultry farmers.

These measures would be crucial in ensuring the availability of these key ingredients of poultry feed to poultry farmers at an affordable price, said NECC.

NECC added that it would also ensure consistent supply of chickens and eggs to the consumer at a reasonable price.

For the past three years, various problems have hit the poultry industry. The bird flu seriously affected the poultry industry and adding to the woes are the rising prices of corn that increased from Rs 500-525 per quintal to Rs 900-1000. Soymeal prices have also jumped from about Rs 7000-8000 per tonne to Rs 19,000.

Futures trading, exports by large companies such as Cargill and trader speculations have led to the price increases, according to NECC.

The sharp increase in feed ingredient prices have dug deep into the pockets of the poultry farmers in the past three years, said NECC, adding that if the situation do not improve quickly, at least 40-50 percent of the industry, which mostly comprises of small farmers, could be forced to close down.

The industry contributes Rs 400 billion to the GNP and provides employment to 3.2 million people. Also, nearly 20 million corn producers and 400,000 soymeal produced in India are consumed by the domestic poultry industry.

Therefore, a setback to the poultry industry would also hurt corn and soy producers as well as the consumers, said NECC.

US$1 = Rs 41.75 (May 13, 2008)