PANAJI
India’s poultry sector, valued at nearly Rs 90,000 crore, is going through a rough ride yet again, the third time in a space of 14 months. Owing to the misinformation that the Covid spreads from the consumption of chicken, along with the nationwide supply chain and logistics logjam, the poultry sector in India has been affected and has run into losses of Rs 26,000 crore in just three months in 2020. In normal circumstances, the poultry sector contributes Rs 1.3 lakh crore to the GDP, according to industry sources.
Pointing out that the Indian livestock sector is currently contributing 25.6% to the Agricultural GDP and 4.11% to the National GDP, the industry stalwarts claim that the poultry industry and other auxiliary industries, such as the livestock feed manufacturers are running into losses. To add to their woes, the prices of raw materials, primarily soya meal, have gone up exorbitantly in the past few months. With the second wave of Covid hitting the country, the sector is facing new hurdles which are implicating the poultry farmers and the livestock feed manufacturers.
Soya meal, which is one of the main components of livestock feed, has a 30 % share in the feed composition and the prices have witnessed a sudden splurge. As compared to the previous year, the soya meal price has increased by a whopping hike of 82%. There is no particular reason for this type of abnormal price increase, as there are ample soya stocks available in the market, claim the industry sources.
Taking note of the situation, the Animal Husbandry and Fisheries department has issued an office memorandum to the undersecretary of the Department of Commerce, recommending duty-free import of 12 lakh metric tonnes of soya meal to avoid further ramification of losses for the sector. This recommendation was in response to a request made by the industry, which had raised the issue early in April. The letter has also requested regulation of soybean commodity trade on commodity exchanges, which would end the speculation-driven surge in soybean prices.
The rising price of soya meal is impacting the price of the finished feed cost which has increased by 25% overall for the past year. The feed industry is unable to pass on this soya price hike to the end consumer fearing loss of customer base and reduced feed demand which in turn is leading to a loss for the feed manufacturers.
The duty-free import of soya will bring down the price to nearly half of the current market rate. This will help our poultry farmers largely and they will be able to reap proper benefits. We, humbly, request the Government of India to act upon this recommendation and help us in these difficult times of the pandemic.”
