Feed price hikes cause unrest in Indian poultry sector

An unprecedented increase in the cost of poultry feed inputs such as maize and soya meal, is pushing India’s major poultry producing states towards a major slump with several farmers incurring huge losses.

The National Egg Co-ordination Committee (NECC) has appealed to the government to grant a moratorium on payment of interest and loans availed by poultry farmers for a period of one year, The New Indian Express is reporting.

The price of soya was increased from Rs 2,800 (USD 46.62) per quintal in April 2012 to Rs 4,670 (USD 77.76) in May this year, local statistics show. Soya bean production during the current year might also be substantially lower compared to last year due to the predicted deficient rainfall, which points to a much higher price in the coming months.

The average cost of egg production has gone up from Rs 2.60 (USD 0.04) per egg last year to Rs 3.50 (USD 0.06) presently. However, the average farm-gate price is only Rs 2.75 (USD 0.05 per egg, thus resulting in a net loss of Rs 0.75 (USD 0.01) per egg for the farmers.

Likewise the average cost of broiler production has increased from Rs 52 (USD 0.87) per kg live weight last year to around Rs 68 (USD 1.13) presently, whereas the average farm gate price is Rs 57-58 (USD 0.95-97), thus resulting in net loss of Rs 10 (USD 0.017) per kg.

The rising costs of feed have left thousands of small and marginal farmers, representing 20-30% of the industry unable to meet the overhead costs of sustaining the operations and have closed down or suspended their farming operations.

It has been predicted that if the present crisis is not addressed, then more than 50% of farms might be forced to close down, which will result in shortage of eggs and chicken.