Poultry prices rise on higher feed costs, flu fear

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New Delhi: Rising costs of feed, particularly soybean meal and maize, along with fear of H1N1 virus (swine flu), have resulted in stiff increases in prices of the poultry products during the last two weeks.

Despite the onset of summer when poultry prices usually soften owing to decline in demand, prices of chicken have jumped from Rs 52 live weight per kg in the wholesale market in Delhi to Rs 64 per kg at present, an increase of more than 23%.

Subsequently, retail prices have soared from Rs 75 per kg to Rs 90 per kg for live weight chicken.

Industry sources told FE that prices of soybean meal, a primary ingredient of poultry feed, have risen from Rs 13, 000 per tonne in October 2008, when fresh soybean crop entered the market, to Rs 23, 800 per tonne at present, an increase of more than 80%.

Similarly, prices of corn (maize) in Bihar are showing northward trends. It is being sold at Rs 9000 per tonne as against Rs 7000 during the year-ago period.

Consequently, according to the Poultry Federation of India (PFI), prices of poultry feed consisting mainly of soyameal and corn is selling at Rs 18,000 per tonne at present compared with Rs 16,000 during the corresponding period of the previous fiscal.

However, what is worrying poultry farmers is that owing to decline in maize crop in Bihar as a result of the last year's flood, large-scale hoarding is taking place in the state.

According to Amit Sarogi, executive member of the Poultry Federation of India (east zone), there is an acute artificial shortage of corn for the poultry industry in the state and prices are expected to rise further over the next few months.

According to the Bihar government estimates, maize production in the state is expected to go down from 2.8 million tonne last year to around 1.8 million tonne this year. Bihar produces around 15% of the total production estimated to be around 15 million tonne.

Besides, the possible threat of Swine Flu in the country is also pushing chicken prices up. "There are possibilities that those who consume pork may shift to chicken in the short run," Ricky Thaper, treasurer, PFI, told FE.