The Hindu : Andhra Pradesh / Hyderabad News : Feed prices touch the skies

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Sunday, Aug 03, 2008
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Andhra Pradesh

Andhra Pradesh - Hyderabad

Feed prices touch the skies

HYDERABAD: The impact of sharp increase in prices of Maize and Soya, main ingredients of poultry feed, has multiplied the sale price of eggs and broiler chicken in Hyderabad and surrounding districts. This increase in production cost is also threatening to put small and medium poultry farmers, out of business and bankrupt.

This year in January, the price of one egg was between Re. 1 and Rs. 1.70 and now the prices hover between Rs. 2.25 and Rs. 2.50 per egg. Similarly, during the same period, the going rate of broiler chicken was between Rs. 32 and Rs. 38 a kg. and now the costs have escalated to nearly Rs. 90 per kg.

Apparently, poultry feed shortage is driving the prices up. There are allegations that traders and big exporters are hoarding Maize and Soya, in the hope of exporting the same, when export ban is lifted by October 15. Despite the increase in rates, however, the consumption of eggs and broilers in the district has remained steady. Due to the huge costs of poultry feed, farmers spend Rs. 2 to produce one egg. However, there is no corresponding increase in the farm gate price of one egg, which is still Rs. 1.86. By the time, the egg reaches the customer through the middlemen; cost goes up to Rs. 2.50.

Last year, cost of maize was between Rs. 7 and Rs. 7.50 per kg and now its rate is between Rs. 12 and Rs. 12.50 per kg while the rate of Soya was between Rs. 10 and Rs. 11 per kg. Now its rate is a whopping Rs. 25 per kg. Despite this, consumption of eggs and broilers in Hyderabad remain at 40 lakh and 1.2 lakh per day respectively.

“Poultry products should be available directly without middleman. Government should extend the existing ban on export of maize and Soya, which is going to end in October 15. Several small and medium poultry farmers have already gone bankrupt and closed production units,” says president of Hyderabad Layer Farmers Association K. Mohan Reddy.

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Andhra Pradesh