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COIMBATORE: The diversion of maize for ethanol production has sent poultry feed costs soaring in the poultry hub of Namakkal.
Maize, a key ingredient in poultry feed, has seen a sharp increase in price, from around Rs 22 a kg to about Rs 30 per kg, over the past year. Farmers attribute the rise partly to the diversion of maize to industries producing ethanol.
“The diversion has been taking place for the past two years, with larger volumes being channelled to ethanol production this year. Farmers haven’t faced any shortage of maize so far, but there are growing concerns that supplies could come under pressure if the diversion for ethanol continues to increase,” said Vangili Subramaniam, president of the Tamil Nadu Egg Poultry Farmers Marketing Society.
Maize for the poultry industry is sourced largely from Uttar Pradesh, Bihar and Karnataka. Farmers also claimed that some traders were holding stocks to create artificial scarcity.
“The increase in feed costs extends beyond maize, as soya, which was around Rs 30 a kg, has risen to Rs 60 and above. Similarly, phosphorus, an imported mineral essential for poultry nutrition, has risen from around Rs 30 a kg a year ago to Rs 90 a kg.
The prices of the essential amino acids lysine and methionine have also surged from around Rs 150 a kg to Rs 800 a kg. A significant share of these supplies come mainly from China, and the price rise is attributed to increasing shipment costs amid the Gulf war,” he added.
Despite the steep rise in input costs, egg prices remain low, causing distress to farmers. The farm-gate price of an egg is currently around Rs 5.20, against a production cost of approximately Rs 5.50, leaving farmers with a loss on every egg. The farm-gate price of broiler chicken is around Rs 80 a kg, while the production cost is estimated at Rs 110 a kg.
“Egg prices have remained subdued because of the Shravan month and are expected to recover with the onset of winter,” said S Murugavel, another poultry farmer.