AIPBA Chairman Shri Bahadur Ali, in a representation to Ministry of Fisheries, Animal Husbandry and Dairying, said ethanol makers’ growing thirst for maize has also pushed prices skyward, posing a major challenge for Indian poultry farmers. The All-India Poultry Breeders Association (AIPBA) demanded that the government permit duty-free import of maize to meet the requirement of the poultry industry amid rise in the grain consumption in ethanol production and insufficient domestic output.

With maize prices hovering around Rs 25-26 per kg across India, poultry farmers are grappling with unsustainable costs,” he said and cautioned that the burden is expected to intensify in the future, which may adversely impact the poultry industry. Against this backdrop, the association stated that there are two options before the government to address the rising demand for maize in both livestock feed and other industries. One option is importing maize, and the other is increasing domestic production.

“However, significant short-term increase in domestic output is deemed improbable. Therefore, importing maize from other countries emerges as the most viable solution to meet the immediate demand,” it stated in its representation. The current basic import duty on maize is 50 per cent. Citing concerns over the rising maize consumption in ethanol production, the association pointed out that India’s 34.60 million tonne annual maize production is insufficient to meet the requirements of the poultry industry as well as the nation’s food security.

As per estimates of the Indian Institute of Millets Research, the poultry and livestock industry consume more than 60 per cent of the country’s maize production, it said. In this context, the government’s ambitious plan to generate half of the ethanol from maize by 2025-26 “may have some serious implications for sectors like poultry and livestock.” The association said diverting such a significant chunk of current maize production could impact their access to essential feedstock, creating a severe demand-supply gap in the coming years. Also, maize production growth over the decade has been at 4.5 per cent, while the poultry industry has experienced a growth of 8-9 per cent. “This disparity highlights the anticipated maize shortage for the poultry industry, particularly in the wake of the government’s plan to promote maize for ethanol in a big way,” it observed. India is the sixth largest producer of maize in the world and its production in India is second only to wheat and rice.

Vets in Poultry Writes Letter to Govt to Slash Maize Import Duty

Maize is grappling with soaring local prices which is a critical component in poultry feed constituting 60% of the total feed

Poultry sector urges the Indian government to cut import duty on maize as soaring local prices threaten financial stability and consumer affordability.

In an important appeal addressed to Hon’ble Union Minister Sh. Parshottam Rupala, who oversees the Fisheries, Animal Husbandry, and Dairying departments, Dr. Ajay Deshpande, President of the Association of Vets in Poultry (VIP), representing over 1200 veterinary professionals in India, highlighted the urgent challenges being faced by the poultry sector.

The Poultry sector, a key player in the Indian economy, is grappling with soaring local maize prices, a critical component in poultry feed constituting 60% of the total feed.

Dr. Deshpande underscores the immediate threat to the poultry industry’s financial health, with poultry feed accounting for 80% of production costs.

The surge in local maize prices, exacerbated by inconsistent rainfall in major maize-producing states, is driving up the cost of chicken production. Poultry farmers are selling chicken at an average of Rs 65/kg, incurring substantial losses against the production cost of Rs 85/kg.

The letter reveals that the maize production estimate for 2022-2023 is 35.91 million tonnes, with the poultry sector alone consuming around 18 million tonnes.

Moreover, India’s export of approximately 3,453,680.58 MT further strains domestic maize availability. Deshpande emphasizes that the current maize prices of Rs 25/kg throughout India, up from last year’s average of Rs 23/kg, are unsustainable for the poultry farming community.

Anticipating maize prices to reach Rs 28-30/kg by February 2024, the association foresees a worsening situation post that date due to uncertainties in Rabi maize production. To bridge the demand-supply gap, the industry is compelled to rely on imports, but the existing 60% import duty on non-GMO maize is discouraging.

In light of this crisis, the Vets in Poultry Association urgently requests the Government of India to consider reducing the import duty on non-GMO maize from 60% to either NIL or a maximum of 15%.

Deshpande argues that previous instances of maize imports have not adversely affected local farmers; instead, they played a crucial role in stabilizing demand and supply, benefiting both farmers and the poultry industry.

The association supports this request with a detailed calculation, demonstrating that by reducing the import duty, the price of non-GMO maize can be significantly lowered, contributing to a stabilized market. The adjustment aims to support the financial sustainability of poultry farmers and ensure affordable access to nutritious protein for the people of India.

Deshpande highlights the substantial contribution of the poultry sector to the Indian national GDP at 1.5 Lakh crores, generating direct employment for 25,000 layers and over 5 lakh broiler farmers, with an additional indirect impact on over 2 million individuals, primarily in villages.