According to The Hindu Business Line, this will provide immediate succour to the farmers who are facing a severe crisis for the past two years, due to an unprecedented increase in the cost of essential feed ingredients such as maize and soyameal.

During the past two years, the price of soyameal has been constantly rising; it has now reached unaffordable levels, due to various reasons such as as forward trading, exports, speculation and manipulation of price by traders and multi-national companies, NECC said in a release.

According to the committee, the price of soyameal had increased from Rs.2,800 a quintal in April 2012 to Rs.4,670 in May this year.

There is also apprehension that soyabean production this year could be hit due to deficient rainfall, leading to higher price in the coming months.

Due to the higher input cost, the cost of production has gone up from Rs.2.60 a egg last year to Rs.3.50 presently.

However, the average farm-gate price is only Rs.2.75/egg – thus resulting in a net loss of Rs.0.75/egg for the farmers, NECC said.

Also, the average cost of production for broilers has increased from Rs.51-52 a kg live weight last year to Rs.67-68 presently, whereas the average farm-gate price is Rs.57-58 – thus resulting in a net loss of Rs.10/kg live weight for the farmers.

Thousands of small and marginal farmers – representing 20-30 per cent of the industry – have already closed down or suspended their farming operations, as they are unable to feed their birds and meet the overhead costs of sustaining the operations.

Most of the farmers are on the verge of insolvency, the release said.