The rising demand for poultry products in India will boost sales of animal feed in the country, with corn and soymeal predicted to rise 9% this year, local traders say.
The higher demand for local feed could prompt a reduction in overseas sales that are already under pressure from cheaper grains from Latin America. India, however, is still the leading seller of corn and soymeal in Southeast Asian markets. Demand for the two main feed grains in India, the world's fifth biggest producer of broilers, is expected to rise to 12 million tonnes.
Corn will make up most of the feed demand growth due to ample supplies and cheaper prices. Demand for soymeal may not rise as prices surged after late rains hit the soybean crop.
"Consumption of feeds, mainly corn is expected to increase because demand for poultry products are likely to rise by at least 6% this year," said Sanjeev Chintawar, business manager, National Egg Coordination Committee.
Demand for corn could rise by at least 1 million tonnes to 9 million tonnes this year; demand for soymeal is seen almost flat at 3 million tonnes. In domestic markets, corn was quoted at 12,000-13,000 rupees ($193-$209) per tonne, much cheaper than soymeal at 34,500 rupees ($554) per tonne. Soymeal prices however, are up 18% from a year earlier due to the poor harvest.
India's per capita chicken meat consumption is 3.1 per kilogram against the global average of 10.5 kg. Traders expect the consumption to nearly triple to 9.1 kg by 2030.
Source: The Economic Times/Times of India
To comment, login here
Or register to be able to comment.