The New Indian Express ·
Maize price up, TN poultry farms feel pinch
NAMAKKAL: The centre’s ethanol blending policy, which has steadily expanded the use of maize as a feedstock for ethanol production, is increasing demand for maize, raising concerns among Namakkal’s poultry industry insiders as the crop is also a major ingredient in poultry feed. With maize prices already rising, poultry stakeholders fear that further diversion of the crop for ethanol could increase feed and egg production costs.
The increased demand has had an effect across the poultry sector, with maize prices rising from around Rs 22 per kg to as much as Rs 30 per kg over the past year — an increase of nearly 36%. Industry representatives said larger quantities of maize were being channelled towards ethanol this year, intensifying competition for the crop.
P V Senthil, president of the Livestock and Agri Farmers Trade Association, said rising demand for ethanol could significantly affect poultry farmers as there was no easy replacement for maize.
“More than 30% of poultry feed consists of maize and it is an irreplaceable ingredient. It is also important for the colour of the egg yolk. If other feed ingredients are used, the yolk can become pale,” he said. He said maize for poultry feed had to be properly dried and stored, with moisture below 14% to prevent fungal growth and toxins that could affect birds and reduce production.
“If farmers find that lower-quality maize can also be sold to ethanol producers, more of the crop could move towards that market. This is creating competition between the food and fuel markets,” he said. The increase in maize prices has pushed the feed component of egg production from around Rs 2.25 to Rs 3.50 per egg, a rise of nearly 56%,
Senthil said. Small and medium poultry farmers were particularly affected, while financially stronger traders were able to stock maize. “The solution is to increase maize production. The government should set production targets and work with the agriculture department to increase cultivation. Making fuel affordable should not result in food becoming more expensive,” he said.