Eggs seem to be no more good for the financial health of the poultry industry.
A spurt in prices of soya meal in the last few weeks has left the industry in dire straits. Currently selling eggs and broilers at prices lesser than the production cost, it is feared that if steps to control prices of soya meal are not taken, the industry could be forced to raise prices by 30-40 per cent.
The Andhra Pradesh poultry industry, which accounts for one third of India’s production, feels that an increase in exports of soya meal, especially to Iran, has perked up prices to unprecedented levels.
“Soya prices have risen by about 75 per cent in the last few weeks. Soya traders are taking undue advantage of support of exports and stocking up large quantities for speculative prices,” Mr D. Sudhakar, president of AP Poultry Federation, said.
The State produces seven core eggs per day and three crore broilers every month, providing employment to more than six lakh people.
Although there has been a good harvest of soya this season, prices have been ballooning. There has also been a good harvest of maize up to 22 million tonnes during the last year.
“Two years ago, soya was available in the domestic market for Rs 1,400 per quintal. Today it is Rs. 3,200. Due to this, cost of production has increased to Rs. 2.75 for eggs and Rs 70 for broilers. We are still selling eggs for Rs. 2.25,” Mr Sudhakar told media persons here on Monday.
In fact, about 20 days ago soya meal prices were ruling at Rs 18,000 per tonne, going up by 75 per cent to Rs 32,000 today. Industry players feel that a crop failure in countries such as Brazil and US has led to increase in exports from India to countries like Iran, Vietnam, Bangladesh and Pakistan. “We fear soya prices could touch Rs 35,000 in matter of days. Availability also could become an issue,” he pointed out.
The industry has called for ban on exports of soya to put the industry back on track. It has also called for provision of damaged wheat and paddy at subsidised rates to poultry farmers to make up for the unavailability of soya at reasonable prices.