November 20, 2024

Corn shortages in Sri Lanka linked to ethanol production, driving up egg and chicken prices

The Sri Lanka-based All-Ceylon Egg Producers' Association (ACEPA) has voiced concerns about the increasing diversion of corn to the alcohol industry for ethanol production, which it claims is directly contributing to rising egg and chicken prices in the country.

Speaking at a press briefing, ACEPA treasurer Wijaya Alwis revealed that over 50,000 metric tonnes (MT) of corn are diverted annually to ethanol production. This diversion is significant, given Sri Lanka's total annual corn requirement of approximately 600,000 MT, a demand that local production fails to meet.

Alwis explained that corn is already in high demand for various food products, including human consumption, leaving insufficient supplies for animal feed. This shortage has placed significant strain on the poultry industry, affecting feed availability and production.

"With local corn production being limited, it's essential that we prioritize its use for producing protein-rich foods like eggs and chicken for human consumption," Alwis stated. He added that the 50,000 MT of corn allocated to ethanol production is exacerbating the shortage and increasing costs for consumers.

Alwis called on the government to allow ethanol producers to import corn for their requirements, ensuring that domestic industries such as poultry and livestock farming are given priority access to local supplies. "A well-structured system for importing corn is needed to balance the demands of both ethanol production and the poultry industry," he said.

The issue has already been brought to the attention of the Secretary to the Ministry of Agriculture, according to Alwis. He warned that failure to address the situation could lead to further corn shortages and a surge in imports beyond current levels needed to meet domestic demand.

Alwis also stressed the need for a balanced approach to corn allocation, highlighting the risks of continuing to divert supplies to ethanol production. "If this trend continues, it could result in an even greater reliance on imported corn," he cautioned.

Alwis urged the government to act swiftly to protect the local poultry industry and ensure that corn supplies are directed toward essential food production.

-      Chinimandi