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Even as the threat of cheaper chicken leg imports from the US looms, the poultry sector has a new problem at home. The increase in the minimum support price (MSP) of maize and soyabean will push up input costs for the sector, industry players say.
The Centre has announced a 19 per cent increase in the MSP for maize and 11 per cent for soyabean for the ongoing kharif season. . The ₹80,000-crore poultry-and-livestock feed sector consumes around 70 per cent of the nearly 26.88 million tonnes of maize produced in the country.
“Prices of maize and soyabean will be higher this year and add to our costs,” said Ashok Kumar KS of MAA Integrators, a poultry breeder at Doddaballapur, near Bengaluru.
The advantage of the low grain prices of the past two years may just cease to be in the year ahead. Soyabean prices have risen 11 per cent over the last year, and have been trending higher than the MSP for mush of the last season.
Maize, whose prices have been volatile, ruled below the support levels, but are still higher than the global prices.
“We welcome the government’s move with regard to increasing farmers’ income,” said B Soundararajan, Chairman of the Compound Livestock Feed Manufacturers Association (CLFMA). “However, the impact of the MSP hike in maize will be more when compared with the soyabean and will make it difficult for the industry to take on the global competition,” he added, who’s also the Managing Director, Suguna Holdings Pvt Ltd, a large poultry player. “If the government intervenes in the market to procure, the prices will shoot up,” he said.
2nd batch arrives
Meanwhile, the second consignment of a small quantity of American chicken arrived in Mumbai on a trial basis, triggering worries among local producers.
“Besides MSP, we would like to suggest some more action for the Government such as reviewing APMC Act and cess; enable direct procurement from farmers; and more investments in supply chain to ensure year-round availability of quality maize at affordable prices,” said Raghavan Sampathkumar, Executive Director, CLFMA.
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