Online edition of India's National Newspaper
Saturday, Jan 05, 2008
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Tamil Nadu
The price of maize is between Rs. 800 a quintal and Rs. 900 a quintal The rise in price has not helped farmers but middlemen NAMAKKAL: The country’s poultry industry, which provides livelihood to over 3.2 million people and contributes approximately Rs. 36,000 crore to the GNP, is facing a deep crisis. The steep increase in the price of bird feeds such as maize and soya meal has contributed to it. Saying that hoarding and forward trading as the main reasons behind the price hike, the National Egg Coordination Committee (NECC), the body that coordinates the countrys poultry industry, has asked the Union Government to immediately ban exports by private operators and also forward trading. Till 2005-06, the maize price was ranging between Rs. 500 and Rs. 550 a quintal. From mid 2006, the price started increasing from Rs. 800 to Rs. 900 a quintal. Harvesting seasonA NECC spokesperson points out that in some parts of North India, the price is as high as Rs. 1,000 a quintal, a 100 per cent increase. In the past, maize prices use to be lower during the harvesting season and increases slightly thereafter. But, during the last two years, the price has ruled high even during the harvesting season, the spokesperson claims. The main reasons for this unwarranted and unreasonable increase are forward trading and export of maize by private players who hoard the grain withholding the same from the domestic market. Nearly 2 crore farmers, who grow maize, are directly depending on the poultry sector, as nearly 80 per cent of the maize produced in the country is being consumed by the poultry industry. The spurt in the price has not benefited the growers in any way. But it has benefited the middlemen, hoarders and speculators, the NECC points out. Added to this, the price of soya meal, another essential feed ingredient, particularly for broiler feed, has also increased from about Rs. 8,000 to Rs. 16,000 a tonne. Feed costThe NECC says that feed cost accounts for more than 75 per cent of the cost of production of eggs and broilers, and hence, even a marginal increase in it will upset the delicate economic balance in the industry. According to it, a mere 10 per cent increase in feed cost will erode the farmers’ profitability by as much as 87 per cent. As it is, the break-even levels for egg and broiler production have also gone up considerably compared to last year. The break-even level for broilers has gone up from Rs. 27 and 28 a kg to Rs. 33 and 35. Similarly, the break-even level for egg production has increased from Rs. 0.90 and Rs. 1.00 to Rs. 1.45 and 1.55. Those in the industry, say that they are not against the maize export per se. But it should be properly routed through agencies like State Trading Corporation.
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