iGrain India - The Indian poultry industry is currently grappling with significant challenges, primarily driven by the rising cost of maize, which is a crucial raw material for poultry feed.
This increase in maize prices is largely due to the growing demand for maize from the ethanol production sector.
As ethanol manufacturers are willing to pay above the minimum support price (MSP) for maize, this reduces its availability for other industries, including poultry and starch manufacturing. Consequently, the poultry industry faces heightened costs and supply shortages.
The President of Poultry India has expressed concerns that the government's focus on ethanol production is exacerbating the situation for the poultry sector, which is now struggling with rising feed prices. To address this issue, Poultry India is advocating for increased domestic maize production and the removal of restrictions on maize imports until local supply can meet the growing demand.
Additionally, the poultry sector is seeking more policy support and incentives from the government, including efforts to boost maize and soybean production by expanding sowing areas and improving agricultural yields.
The price of maize and soybeans has been rising steadily, with an annual increase of about 2.3%, while the government's MSP also continues to grow. Despite these efforts, the expected growth in domestic maize production has not materialized, leading to concerns over food security for the poultry sector.
The lack of sufficient maize supply has also impacted exports, which are now nearly stagnant. The poultry industry is urging the government to provide more targeted support to ensure the stability of feed prices and alleviate the burden on the sector.