Poultry Units troubled over Feed Price Hike……

INDIA – Due to an unprecedented increase in the cost of poultry feed like maize and soya meal, the poultry industry in the state is heading for a major slump with several farmers incurring huge losses.

The National Egg Co-ordination Committee (NECC) 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 reports that the price of soya was increased from Rs.2,800/- for each quintal in April 2012 to Rs.3,980/- for every quintal in April 2013. It has further increased to Rs.4,225/- for each quintal this April to Rs.4,670/- for every quintal in May.

The increase in Minimum Support Price of soya bean for the current year and the apprehension that soya bean production during the current year might be substantially lower compared to last year due to the predicted deficient rainfall, point to a much higher price in the coming months.

Due to the steep increase in input cost, the standard cost of production of eggs has gone up from Rs.2.60/- for each egg last year to Rs.3.50/- this year. However, the average farm-gate price is only Rs.2.75/- for each egg, thus resulting in a net loss of Rs.0.75/- for each egg for the farmers.

Similarly the average cost of production of broilers has increased from Rs.52/- for each kg live weight last year to around Rs.68/- this year, whereas the average farm gate price is Rs.57-58 for every kg, thus resulting in net loss of Rs.10 for each kg to the farmers.

Many small and marginal farmers, representing 20-30% of the industry, have already closed down their farming operations, as they are unable to feed their birds and meet the overhead costs of continuing the operations.

If the present crisis are not addressed, more than 50% of the farms might be forced to shut down, which will result in shortage of eggs and chicken. If this happens, people should be ready to pay the double price of an egg! Egg price is certainly going to be raised.