High maize prices & shortage hits poultry, starch industries
In Indore, soaring maize prices and limited supply have significantly impacted the poultry and starch-based industries. Maize prices have surged to over Rs 26 per kg, up from Rs 20-22 six months ago, raising poultry feed costs and squeezing margins. Poultry prices have dropped over 17% due to reduced consumption during Shravan. Starch-based industries, like adhesive production, face production losses as maize scarcity drives up starch costs, affecting their margins and business viability.
Indore: The exorbitant prices of maize and its constrained supplies in the spot market have impacted the margins of poultry industry and led to production losses in starch-based industries.A decline in local supplies of maize in spot markets and lack of suitable quality have diminished availability for industrial use, hitting production in various industries.
The soaring prices of maize have propelled the cost of poultry feed to more than Rs 26 per kg, compared to Rs 20-22 per kg approximately six months ago, as reported by poultry farm owners.Maize constitutes a crucial ingredient in poultry feed, and the surge in its price escalates the rearing cost in the poultry industry, as stated by industry players from the poultry farms.
Dinesh Makhija, a proprietor of a poultry farm in Indore said, “The cost of poultry feed has increased steeply and this is detrimentally affecting the business. The cost of rearing has escalated, while conversely, the prices of eggs and chicken have plummeted”.
Poultry prices in Indore have nosedived by over 17% in a month due to diminished consumption during the auspicious Shravan month. Indore serves as a prominent trading hub for poultry products, from where eggs and chickens are dispatched to various locations across the state. The maize crisis has constricted margins and hindered production in starch-based industries.
Tarun Vyas, owner of an adhesive industry on Sanwer Road, said, “Our raw material is starch, which is derived from maize. The cost of starch has risen precipitously in the last two months due to scarcity in the local market. This is adversely impacting our margins and causing production losses”.
Industries utilizing starch and maize reported that the sharp escalation in prices has amplified the cost of production.”It’s a fiercely competitive market, and such a steep increase in the cost of production takes a toll on the overall business. Business gets hampered, customers start seeking alternatives, and we lose both profits and clients,” remarks Vyas.
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