October 1, 2008

India's poultry industry, having suffered from high feed prices in recent months, is gearing up for an increase in sales of eggs and chicken as the winter months approach.

With the prospect of a bumper soy harvest, the poultry industry is expecting the prices of feed to fall along with a rise in consumption of eggs and chicken over the next few months.

Currently, soymeal has been selling at Rs 25,000 (US$532.20) per tonne, up from Rs 16,000 (US$340.60) in the same period last year. Following the recent ban on the export of corn, another key component of poultry feed, the price has dropped from Rs 10,500 (US$223.50)per tonne to about Rs 8,500 (US$180.90) per tonne currently.

According to the Poultry Federation of India (PFI), the consumption of chicken and eggs usually rises after the religious festivals of Navratras and Eid.

A good soy crop may soften feed prices over the next few weeks, the PFI said.