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Rising Input Costs, Falling Consumption Hurt Indian Poultry Sector

25 October 2013

INDIA - In recent months, rising input costs and low consumption have hit the Indian poultry sector.

The segment, which saw peak selling prices of up to Rs 80 a kg between April and June this year, as the industry resorted to production holidays, is again recording losses due to a decline in prices in the last quarter.

Business Standard reports that in southern markets such as those in Bangalore, Chennai and Hyderabad, farm-gate prices of poultry have fallen to Rs 55 a kg, a decline of 34 per cent compared with Rs 80-83 a kg in June this year.

In northern markets such as Delhi, Lucknow and Chandigarh, prices have declined to Rs 62 a kg, against Rs 93 a kg in June.

Poultry farmers are losing Rs 8-10 a kg, as production costs stand at Rs 63-65 a kg.

The rise in input costs is more in north India, as maize, a key ingredient in poultry feed, is largely procured from southern states.

"The prices of key poultry feed such as maize, soya extracts, bajra and imported amino acids and vitamins have increased 25-30 per cent. In addition, consumption has dropped, as people do not consume during the months from Shravana to Karthik (July to November)," said M C R Shetty, president, Karnataka Poultry Farmers & Breeders Association (KPFBA).

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