Sri Lanka raises import duty on feed corn
Sri Lanka is considering higher import duties on feed corn to boost revenue, but industry warns it may raise poultry production costs. With already expensive inputs like additives, the move could pressure margins and eventually impact chicken prices, highlighting a trade-off between fiscal goals and food affordability.
The Sri Lankan government is considering increasing the import duty on feed corn as part of its efforts to increase budget revenue. However, industry representatives are warning of negative consequences for the poultry sector, which is already experiencing rising costs.
According to Palika Fernando, Secretary of the Ministry of Agriculture, Livestock, Lands, and Irrigation, the decision to adjust the import duty has been made, but the final parameters of the increase have not yet been published.
Market participants note that this measure will further increase feed costs. According to Dilshan Wewita, Managing Director of Pussalla Meat Producers, corn prices are already elevated, and the introduction of new duties will only increase pressure on production costs.
An additional cost driver is the rising cost of imported feed additives, including DL-methionine, which is negatively impacting production economics.
The industry warns that further cost increases could impact poultry prices. However, chicken price growth remains limited at the moment, with prices in recent weeks hovering around $0.15–0.31 per kg.
Corn import licenses are expected to be issued in late April–early May, which will be an important factor in balancing the domestic feed market.
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Source : Ukr Agro Consult
