Maize prices rise on robust poultry demand
Rising demand from poultry industry and the government’s thrust on ethanol production have pushed mandi prices of maize by 20% to Rs 26,500/tonne from Rs 22,000/tonne in the last three months.
Trade sources said that prices are ruling higher than the minimum support price (MSP) of Rs 2090/quintal for the current crop years (2023-24) as the poultry sector which is witnessing growth rate of around 8% annually while the increase in maize output has not in commiserate with the demand.
“Any further increase in maize prices will increase feed costs which will further increase cost of production of broiler and eggs,” Ricky Thaper, Treasurer, Poultry Federation of India, told FE.
The poultry feed prices is currently ruling around Rs 40,000/tonne against Rs 36,000/tonne prevailed three month back.
The composition of animal feed is 65-70% is energy source mostly from maize, bajra and broken rice while rest is protein source mostly from soybean meal, groundnut extraction and mustard deoil cake.
While globally maize is the primary feed-stock for ethanol production, it is used in India mostly for animal feed and industrial use.
To meet rising demand from animal feed and bio-fuel makers, the government is targeting to increase production of maize by 10% to 42 million tonne (MT) by 2025-26 from 38 MT in 2022-23 crop year (July-June) through initiating measures such as crop diversification, cluster development for ethanol plants and involving private sector in seed development.
Currently 10.74 million hectare (MH) is under maize output and the aim is to expand area by one MH in the next couple of years.
Under the crop diversification paddy, the focus is being given to divert paddy grown in Indo-Gangetic plains and north-western plans to maize.
Ramesh Chand, member, Niti Aayog has earkier stated there is a need to increase maize productivity to meet the target demand for ethanol production.
For increasing productivity, the agriculture ministry is focussing on improving kharif output through increasing use of climate resilient and pest resistant seeds and increasing area under hybrids.
Maize is grown during both kharif and rabi seasons. Karnataka, Madhya Pradesh and Maharashtra have close to 40% share in total output.
About 60-65% of the output of maize is used as poultry and animal feed while 20% is used for industrial use.
Maize is the third most key cereal crop after rice and wheat.
Source Link: https://www.financialexpress.com/policy/economy-maize-prices-rise-on-robust-poultry-demand-3417527/
Recommended for you
