April 20, 2009
India''s poultry feed prices rising steadily
Poultry feed prices in India have been rising steadily over the past few months due to sharp increases in soymeal and corn prices.
Soymeal and corn are key ingredients in poultry feed, and their prices have increased because of lower output.
Higher feed cost could boost local poultry prices, but if coupled with the slowdown in demand during summers, could severely hurt the poultry industry.
Soymeal prices in Delhi market rose to Rs22,800 per tonne on Wednesday (Apr 15) from Rs13,000 per tonne in October 2008. Corn prices in Bihar are now at Rs8,800 per tonne against Rs7,000 per tonne during the same period last year.
Prices of poultry feed have rose to Rs19,000 per tonne against Rs14,000 per tonne six months ago.
The price changes have impacted both poultry farmers and feed manufacturers, prompting the Poultry Federation of India (PFI) to renew its call for curb on soymeal exports.
The demand of the local poultry industry needs to be met before soymeal is allowed to be exported, said Rajeev Gupta, director of Khushboo Feed Mills Pvt Ltd.
The poultry industry requires about three million tonnes of soymeal annually.
The government for the time being can at least withdraw the 10 percent export incentive for soymeal, said PFI Treasurer Ricky Thaper.
India''s soymeal exports this year are expected to fall to four million tonnes from five million tonnes last year, said tradebody Soyabean Processors Association (SOPA).
However, trade body Soyabean Processors Association (SOPA) said that the export
SOPA data indicated that soymeal export in the first half of 2008-09 reached 2.5 million tonnes, down from 3.2 million tonnes in the same period last year.
In Bihar, corn production is also expected to reach 1.8 million tonnes, down from 2.8 million tonnes last year.
US$1 = Rs50.0396 (Apr 20)