High maize prices singe poultry, starch

Poultry and starch industries "� the two major maize consumers "� are planning to revise rates amid shooting maize prices.

The Rs 1600-crore starch industry, has already seen the prices of starch going up to Rs 18 a kg from Rs 16 a kg in the last one month.

GETTING DEARER

Retail price of an egg may reach Rs 4 by October from Rs 2.70 now

Starch set to reach Rs 20 a kg from Rs 18 now

Maize prices inching towards Rs 1,000 a quintal

Industries demand imposition of export duty on maize

Amol S Sheth, president, All India Starch Manufacturers' Association, said, "Availability of maize is the biggest concern now. We have sent a representation to the government to regulate maize export. Even with a marginal increase in prices of maize, starch prices will increase to Rs 19-20 a kg."

Pharmaceuticals, food and textile industries are major consumers of starch. "Due to non-availability of maize, we have to curtail production which will have a resultant effect on the entire chain of industries," said Sheth.

Factory landed prices of maize have increased from Rs 750 a quintal to Rs 950-1,000 over the last two months. Even in the main maize growing state of Karnataka, rates have shot up to above Rs 1,000, said industry sources.

The Rs 38,000-crore domestic poultry industry could see small farmers disappearing, said Anuradha Desai, chairman, National Egg Co-ordination Committee (NECC). Currently, egg is retailing at Rs 2.50-2.70 across the country.

"However, in July the retail prices may go up to Rs 3 a piece. And I cannot rule out the possibility of it reaching Rs 4 by October," added Desai.

NECC has reiterated its demand for banning futures trading in maize and channelising maize exports through public sector bodies. It said that export duty should be introduced on the commodity.

According to market sources, maize exports in the current season could reach 2.5 million tonnes, the highest so far. "The government stand of not banning maize export has come as a shock to us," said Desai. The next crop of maize is still four months away.

Due to such steep rise in the price of essential feed ingredients, the break-even level for egg production has gone up from Re 0.90-1.00 to Rs 2-2.10 per egg, and the break-even level for broiler production has gone up from Rs 27-28 to Rs 41-43 per kg, said NECC.

At a time when inflation is inching towards 9 per cent, such an increase in poultry products will have a negative effect.

NECC further said that already 10 per cent of the industry, mainly small farmers, has closed down, and if the situation continues, fortunes of at least another 30 per cent will go under.

On the National Commodity and Derivatives Exchange, the July futures of maize closed at Rs 968 a quintal on Thursday against Rs 857 a month back, up 13 per cent.