The Hindu Business Line : Poultry sector buys bajra to counter maize price surge

IN view of soaring prices of maize, a primary feed ingredient, poultry feed producers, especially in Tamil Nadu, have started to look towards bajra as an alternative.

Major integrated poultry feed companies, especially those linked to broiler production, have started outsourcing bajra from Rajasthan, which costs nearly 15 per cent less than maize, poultry feed industry sources have said.

"Plans are afoot to source an estimated 40,000 tonnes of bajra from Rajasthan to tide over the consumption demand for the April and May 2004 period for the feed sector; the two-month requirement may even stretch up to 50,000 tonnes," said Dr P. Selvaraj, Chairman of the Namakkal-based National Egg Coordination Committee's zonal committee.

He told Business Line that the State's integrated poultry feed producers wanted to take advantage of the bumper bajra crop from Rajasthan, whose prices are quoted lower by Rs 100 per quintal compared to the price of maize, currently ruling at around Rs 630 per quintal.

Dr Selvaraj said bajra sourcing is being done on a trade basis at the individual company level without any centralised channelling.

The poultry feed manufacturers are seeking bajra as an alternative to maize to bring down the cost of production of feed, especially since the return for the poultry sector is low.

The bulk of bajra imports is currently being done by the broiler producers of the Palladam belt; the volume of bajra outsourced by the layer sector is yet to pick up.

Since the bajra substitution has been brought about to put a lid on the maize price surge, indications are that the poultry feeders may increase the volume of bajra sourcing from northern production centres up to 80,000 tonnes this year if the price spiral continued.

Currently, Tamil Nadu poultry is still being haunted by the lean patch in terms of price realisation for table eggs and live chicken. However, the sluggish market for poultry products in view of the Lenten season and public examinations is expected to give way soon, leading to price pick-up. By then, the feed sector would be keen to insulate its raw materials from any further price spirals, hence the search for the alternative to maize, the sources said.

Meanwhile, broiler prices across the country have reportedly gained strength this week. The state broiler coordination committee (BCC) raised the farmgate price on Friday for live chicken to Rs 25 a kg over last week's Rs 20. Other major broiler markets such as Delhi (Rs 44), Pune (Rs 35) and Hyderabad (Rs 25) have also seen a price lift this week. (Namakkal NECC) wholesale price in Tamil Nadu (Namakkal NECC) for table eggs this week continued to remain weak at 90 paise per egg for the second week. The broiler sector said the improved price is due to a reduction in stock on the one hand and the falling body weight of the birds coupled with reduced production.