Import duty should be reduced to zero instead of current 15% in case of maize to be imported under TRQ”
India faces a maize shortage, with production at 36 million metric tons (MMT) against a demand of 41 MMT, exacerbated by ethanol blending needs. Prices have surged above the minimum support price. The All India Poultry Breeders Association and Compound Livestock Feed Manufacturers Association urged the government to reduce import duties to zero and increase the import quota. The rising maize prices threaten to elevate livestock feed costs, impacting the production costs of milk, meat, eggs, and fish
The All India Poultry Breeders Association (AIPBA) and the Compound Livestock Feed Manufacturers Association (CLFMA) claim that there is a shortage of maize availability in the country. Alka Upadhyaya, Secretary of Department of Animal Husbandry and Dairying, brought this to the attention of the Department of Food and Public Distribution.
As per available information, in a communication with Food Secretary Sanjeev Chopra on July 22, she stated, “I would like to bring to your notice that the AIPBA and CLFMA have informed that there is shortage in availability of maize in the country. It has been informed that total estimated production of maize in the country is 36 MMT whereas requirement of maize is expected to be 41 MMT including meeting the demand of ethanol blending. The price of maize has also been increased and gone beyond the MSP value. Currently the maize selling in market is at Rs. 28 /- per kg but there is high probability that it may go beyond the rate.”
She further informed that the DGFT has issued TRQ notification vide Public Notice 13/2024-25 dated 26-06-2024 allowing import of 4.98 lakh MT non GM Meeting through NAFED with 15% import duty. The industry has requested that the import duty may be reduced to zero and allow actual users to import maize. Further, the TRQ may also be increased to 5.0 Million MT.
“As you may be aware, maize is an integral and basic ingredient in formulating livestock feed, especially poultry feed. Its inclusion level in poultry and cattle feed is 65% and 15%, respectively, which accounts for a demand of nearly 23.40 MMT for the livestock feed sector alone. Considering the demand-supply position and the increasing prices of maize, the cost of animal feed will rise, adversely affecting the production cost of milk, meat, eggs, and fish,” Upadhyaya further added.
In view of the representations from AIPBA and CLFMA, she requested the following considerations:
a) The import duty on maize imported under TRQ should be reduced to zero from the current 15%, and the TRQ quantity should be increased to 3.5 million metric tons.
b) Allowing direct import for maize processors is crucial, as the current requirement to use the NAFED channel is a complex and time-consuming process.
Recently, in a letter to Food and Consumer Affairs Minister Pralhad Joshi, the Grain Ethanol Manufacturers Association (GEMA) also informed about severe shortages of both broken rice and maize due to various factors.
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