June 26, 2008

India corn prices surge anew, raising worries in feed sector

India's corn prices climbed again this week, stirring fresh worries to poultry feed manufacturers.

The market yard prices jumped up to INR8,300 to INR8,500 a tonne, INR500 more than the previous week's prices. The spot prices also went up to INR9,600 to INR9,800 a tonne.

The rates quoted at the consumption centres hovered around INR10,500 to INR10,600 a tonne. The rate at Nizamabad was INR9,150 and at Davangere INR9,087 a tonne.

The US Grains Council India said that with rising corn prices and fears on the availability of sufficient stocks to last for the next three months, the livestock and poultry sector would have to think of alternative inputs.

India may look on grains such as sorghum or rice for alternatives, despite their reduced efficiency.

With feed costs going up, the cost of production of live chicken has also gone up to INR42-44 a kilogramme.

The CBOT corn rates last week ended lower at $284 a tonne for July delivery.

US$1 = INR42.72 as of June 26, 2008