Tumbling prices of corn (maize) in the world market were expected to supplement scanty maize production at home. Affordable feed prices could then have kept the poultry farmer comfortable in times of crashing egg and poultry prices. Corn imports are allowed for use as feed and fodder and were duty-free until Wednesday. Maize imports of upto 3.5 lakh tonne will now attract 15 per cent basic customs duty. Larger import orders will attract upto 50 per cent basic import duty.

Indian hatcheries are already apprehensive about prospects of cheaper imports of chicken leg quarters from the United States (where corn grows is cheap), once quantitative restrictions on the table bird vanish next year. By April 1, 2001, imports of ``live poultry fowls'' and ``meat and edible offal of poultry, fresh, chilled or frozen'' will move out of the ``restricted list'' and become freely available.

At the moment, only luxury hotels are allowed to import table fowl. About 127 tonne were shipped last year. An anticipatory duty on poultry meat imports would have made sense. Instead, Indian broiler, fed on expensive grain, face prospects of turning even less competitive than table birds in the United States, China and the European Union, where corn production is as large as the poultry population. Says a government agronomist,"The main problem that Indian hatcheries face is expensive chicken feed.

US grain imports could be a solution to the problem.'' The poultry sector may, according to one estimate, require upto three million tonne of corn imports by 2005. This is because maize production in the country is stagnant and corn is increasingly used for other purposes, like making starch, for instance. India grows 11 million tonne of maize and consumes roughly 15 million tonne of the grain. The United States grows 248 million tonne of corn and only consumes 192 million tonne.

The Chinese maize production is close to 124 million tonne while domestic consumption stands at 117 million tonne. The European Union, which bars Indian egg powder because of quality restrictions, grows 34 million tonne of corn. The trade block produces 15 per cent of the world's 55 million tonne of poultry meat. The US is the largest producer and consumer of poultry. The US contributes 27 per cent of the world's poultry, while China follows with 22 per cent of the global output. Domestic feed millers began importing maize.

In the first seven months of 1999, India imported roughly 1.168 lakh tonne of corn, including roughly 86,000 tonne from the United States. Consumption of commercial poultry feed went up by nine per cent to 2.4 million tonne in 1998-99, despite the high price of domestic corn. The poultry industry, however, only grew by three per cent. An increase in imports was expected to bring chicken feed prices down this year. The year 2000 should have seen hatcheries make profits. Low feed costs should have compensated for the falling prices of both table eggs and birds. Egg prices are almost Rs 10 cheaper per 100 at the farmgate.

Broiler cost almost 25 per cent less now than in 1998. Retail prices, however, have remained at roughly Rs 70 a kg. Poultry producers have been struggling to make fowls production profitable at roughly Rs 25 per kg. The duty hike on maize, a key ingredient in chicken feed, should also make imported corn dearer. India's poultry production is 1.08 per cent of the global output of 54.91 million tonne. Home production of poultry meat amounts to less than six lakh tonne. Most of this is consumed, leaving some over for exports. Poultry meat is exported primarily to West Asia.

Hatcheries also export close to 120 million table eggs, egg powder hatching eggs and day-old chicks. Exports of both eggs and egg powders have been hit, particularly by non-tariff barriers like high quality standards. The Indian poultry farmer has more trouble awaiting him.