News last update:6 Aug 2012

Indian poultry sector wants maize futures banned

Poultry farmers at the annual general meeting of the National Egg Coordination Committee in Pune, India urged the government to ensure that adequate maize will be available at an affordable price to the poultry farmers.

The poultry industry has requested to remove maize from the list of commodities allowed for forward trading with immediate effect. "Ban export of maize immediately and reduce the rate of import duty of maize under basic tariff quota to zero", NECC said.

The meeting pointed out that the poultry industry is currently facing a crisis due to an unprecedented increase in the price of maize, which is the most crucial ingredient of poultry feed, and accounts for more than 80% of the cost of production of eggs and broilers.

At the present level of production, poultry sector contributes approximately Rs 35,000 crore (US$7.827 billion) to the GNP and provides direct and indirect employment to more than 3.2 million persons, mostly in the rural areas.

Nearly 20 million agricultural farmers who grow essential ingredients of poultry feed such as maize and soybean are also directly dependent on the poultry sector, since 90% of the maize produced in India is consumed by the poultry industry, NECC said.

NECC pointed out that prices of maize have doubled in the past few months from normally Rs 550 per quintal (US$12.30 per 100 kg) to almost Rs 1,000 per quintal (US$22.36/100 kg).

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