December 31, 2008
India Feed Weekly: Dry fodder shortage prompts use of alternatives (week ended Dec 28, 2008)
An eFeedLink Exclusive
An eFeedLink Exclusive
Price Summary
Soymeal rates this week were up around Rs. 1,425 per tonne in Kota market and traded at Rs. 14,350.
The prices of feed meals - rapeseed extraction, sunflower extraction and groundnut extractions were all traded at the prices of Rs. 9,100; Rs. 9,400 and Rs. 10,800 per tonne respectively.
Corn from Uttar Pradesh was traded at Rs. 8,300 per tonne and remains almost stagnant in Delhi markets with a stability scene.
Similarly, corn coming from Rajasthan was also traded between Rs. 8,650 per tonne almost similar to last week's price.
Prices of Pearl Millet in Delhi were also a little upward and traded around Rs. 7,350 per tonne, Rs. 50 per tonne below than last week's price.
In Delhi, prices of Ground Nut Extraction (GNE) 40 % and 45 % were traded at Rs. 10,000 and Rs. 10,900.00 per tonne respectively.
Price of Dry Fodder traded at Rs. 3,593 per tonne. Availability of quantity in Delhi was about 1180.900 tonnes in the week with price range at an average of Rs. 3,585 to Rs. 3,600 per tonne.
However, Green Fodder was not available in the market. Only a small quantity arrived at around 11.300 tonnes at the price of Rs. 16,450 per tonne.
Market Analysis
In absence of green fodder, dairy farmers are forced to use sugarcane for their livestock in different parts of Maharashtra in India.
Thus, sugarcane farmers in the state of Maharashtra are selling their produce at almost double the price to a grass-starved dairy sector.
The Maharashtra state's Sangli-Kolhapur-Satara-Pune-Ahmednagar belt accounts for more than 50 percent of its sugar and milk output. Escalating pricing of cattle feed is also a reason.
"One tonne of manufactured feed costs around Rs. 6,500 while grass costs Rs. 1,400," a farmer said.
"Farmers usually stockpile dry fodder for summer months when there is a shortage of green fodder. That dry fodder has been exhausted and green fodder is not available due to off season," said Vinayak Patil, chairman, Maharashtra State Co-operative Milk Federation.
Maharashtra has three million farmers who own cattle. "Buying sugarcane is a loss for farmers, but they have no other option," he said. "The state government has been setting up fodder depots in dry areas and is also buying cane as cattle feed from farmers," said an official of the animal husbandry department.
"Green grass is more expensive than sugarcane. Prices of manufactured feed are also high. So cane is a better alternative. Livestock is to be fed and cannot be thrown at the mercy of butchers," said Sudhakar Shinde, a farmer who owns 25 buffaloes.
K.K. Singhal of National Dairy Research Institute (NDRI), Karnal (Haryana) said that "total requirement of green fodder in the country is more than 700 million tonnes per year. Whereas, only 600 million tonnes is available and that too is in Western Uttar Pradesh, Haryana and Punjab only."
"In majority of other parts of India scarcity of this particular green fodder exists. Other variety of fodder is deficient in nutrients and also productivity of dry fodder for our livestock is low. Efforts are needed to process better quality and digestible nutrients to supplement the deficiency," Singhal concluded.
Dry weather is conducive for harvesting and post-harvest operations in Rajasthan and adjoining parts of Punjab.
Market Forecast
Wheat prices remain bearish to steady due to good demand amidst increasing supply.
Soy prices are firm on good domestic demand amid decrease in arrivals. Strong exports amid global shortages in edible oil may result in firm trading in futures.
Mustard prices are steady to weak on subdued trading and steady arrivals. But speculation of low output due to diminished acreage may hike future prices.
Groundnut prices are steady to weak on low buying interest. Reduced Rabi acreage and disease infestation in Maharashtra and Gujarat in established crop may push prices.
Guar Seed prices witness upward correction as arrivals decrease. Lower output in Pakistan may support the prices in the long term as the arrivals start decreasing in a few weeks.
Ground Nut prices have taken a jump in the concluding week of the year 2008, but likely to remain slightly upward due to tight market position.
Fodder prices (dry and green) showed a downward trend. However, the next month will prove some good results on the arrivals of some green fodder in the market.
US$1 = INR48.225 (Dec 31, 2008)
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