Higher MSP For Maize, Soyabean Upsets Poultry Industry

India’s poultry sector, which has been registering double digit growth over the last few years, is upset over the Centre’s announcement of higher Minimum Support Price (MSP) for 14 kharif or summer crops – sown in June and harvested in September – last week. The sector is particularly peeved over the MSP being increased for soyabean and maize (corn).

The higher MSP will result in higher input costs for the sector, the Hindu Business Line has reported.

The MSP for soyabean and maize was increased by 11 per cent and 19 per cent respectively. The MSP increase was inline with the Finance Minister Arun Jaitley’s announcement during budget that the Centre would come out with a MSP that would be 50 per cent more that farmers’ production costs for a crop.

Maize and soyabean are part of the compound feed given to poultry animals. The sector consumes nearly 70 per cent of maize in the country. Last crop year that ended this June, India was estimated to have produced a record 26.88 million tonnes of corn. Despite the higher production, rising poultry sector demand will see India importing about five lakh tonnes of the commodity.

Compound feed manufacturers feel that the impact of MSP hike in maize will be more than soyabean. On the other hand, arrival of a second batch of chicken legs from the United States has also left the poultry sector worried.