Due to significant rise in soyabean meal prices along with anticipation of spike in corn prices because of lower output, poultry feed prices have been rising steadily during the last few months. This in turn could push up local poultry prices, which coupled with the slowdown in demand during summers, could badly hurt the Rs 20,000-crore poultry industry.
According to trade sources, soyabean meal prices in Delhi market rose to Rs 22,800 per tonne on Wednesday from Rs 13,000 per tonne in October 2008, a step rise of 60%.
Similarly, the prices of corn (maize) in Bihar has shown northward trends and is now selling at Rs 8,800 per tonne against Rs 7,000 per tonne prevailing during the same period last year.
Price of poultry feed mainly consisting of soyameal and corn, rose to Rs 19,000 per tonne against Rs 14,000 per tonne six months back.
The huge fluctuations in the feed prices have been not only impacting poultry farmers but also the feed manufacturers, prompting the Poultry Federation of India (PFI) to renew its call for curb on soymeal exports as it hurts local consumers.
“The demand of the local poultry industry needs to be met before the soyabean meal is allowed to be exported,” Rajeev Gupta, director, Khushboo Fed Mills Pvt Ltd, Gurgaon- based poultry feed manufacturers told FE. The poultry industry needs about 3 million tonne of soyabean meal annually.
“The government for the time being can atleast withdraw the 10% export incentive for the soyameal for providing level playing field for the poultry sector,” Ricky Thaper, Treasurer, PFI said.
Due to huge export potentials of soyabean meal, the exports have been surging during last few years.
However, trade body Soyabean Processors Association (SOPA) said that the export of soyameal from the country during the year would be around 4 million tonne against the target of 5 million tonne achieved last year. India, Asia’s biggest supplier of soymeal, exported 5 million tonne of the animal feed last year. India produces around 10 million tonne of soybean annually.
According to SOPA data, the export of soybean meal during first half of current year, October 2008 to March 2009, was 2.5 million tonne as compared to 3.2 million tonne during the same period last year indicating a decline of around 20%. “The fall in exports of soymeal is primarily due to non-arrival of soybean in the market,” a SOPA official said.
Bihar’s flood in 2008 is also impacting the output from the state, which produces around 10% of the total production estimated to be around 15 million tonne.
?The maize production is expected to go down this year,? Amit Sarogi, executive member, PFI (east zone) said. In Bihar, the maize production is expected to go down from 2.8 million tonne last year to around 1.8 million tonne this year.