Coimbatore, August 31: The increasing demand for maize from ethanol producers has significantly raised the cost of poultry feed, placing severe financial pressure on poultry farmers in Namakkal, one of the country’s leading egg production centers.
The price of maize, a key ingredient in poultry farming, has surged to approximately ₹30 per kilogram, up from ₹22 a year ago. Farmers attribute this rise primarily to the high volume of maize being utilized for ethanol production.
This trend began nearly two years ago, but reports indicate a substantial increase in the quantity supplied to ethanol plants this year.
While the poultry sector has not yet faced a serious shortage, farmers fear that if ethanol producers continue to purchase large quantities of maize, supply may come under strain.
Namakkal’s poultry industry heavily relies on maize imported from Uttar Pradesh, Bihar, and Karnataka. Farmers have also accused some traders of deliberately withholding stock from the market to create an artificial shortage and drive up prices.
The crisis is not limited to maize alone. The prices of several other essential ingredients and supplements for poultry feed have also risen sharply over the past year.
Soybean, which previously cost around ₹30 per kilogram, is now selling for ₹60 or more. The price of imported mineral phosphorus used in poultry nutrition has tripled, rising from approximately ₹30 to ₹90 per kilogram. Additionally, the prices of essential amino acids like lysine and methionine, used in poultry feed, have skyrocketed from about ₹150 to nearly ₹800 per kilogram.
A significant portion of these animal feed supplements is imported from China. Industry representatives attribute this price surge to increased shipping and transportation costs due to disruptions related to the Gulf War.
Despite the rising input costs, farmers have been unable to secure profitable prices for eggs and broiler chickens. Currently, the farm-gate price of an egg is around ₹5.20, while the estimated production cost is approximately ₹5.50. This means farmers are losing about ₹0.30 on each egg sold.
Broiler producers are facing even greater losses, with the farm-gate price of broiler chicken at about ₹80 per kilogram, significantly lower than the estimated production cost of ₹110.
Demand for eggs remained weak during the month of Shravan, as many consumers avoid non-vegetarian food during this period. Poultry farmers hope that with the arrival of winter, consumption and prices will improve, but the ongoing rise in feed costs could exacerbate the financial crisis in the sector.
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