Ceiling on storage of maize and soya

19-06-2008 | |
Ceiling on storage of maize and soya

India’s National Egg Co-ordination Committee (NECC) has asked the government to impose ceiling on the storage volume of maize and soya meal so that excess stock can be put into the market to lower prices.

The Namakkal zone of NECC points out that the poultry industry in general,
and small farmers in particular, are facing the worst crisis due to the
unprecedented increase in the cost of these essential feed ingredients,
crippling the economic viability of the farmers.

The increase in the
prices of these ingredients, despite a substantial increase in production of
maize from 14 mln t in 2007 to 18.4 mln tonnes during the current year, has
occurred mainly because of the forward trading in maize, speculation and
hoarding by traders.

The industry fears that unless the government takes
steps to bring these stocks down, the commodities may not be available to the
farmers.

The Hindu reports that countries like Argentina, which is a big
exporter of maize, has imposed a duty on maize exports so as to keep the
domestic prices in control. Additionally, Brazil has also stopped exporting
maize. Meanwhile, India has started exporting higher quantities of maize. Unless
the situation is remedied immediately, 40-50% of the poultry industry may close
down, it is reported.

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