Maize row: TN poultries prefer contract farming

COIMBATORE: The low availability and high prices for maize have led the poultry units in Tamil Nadu to enter into contract farming with maize growers. According to poultry industry sources, this move is an attempt to procure maize, the main feed ingredient for the Rs 1,000-crore poultry sector in the state, at an assured minimum price.

The month of November saw farmers land in trouble with soaring prices owing to low availability and intermediaries. Maize prices have shot up to Rs 8,000 per tonne in November 2006, as against Rs 5,500 for the same period last year.

While the poultry industry in Tamil Nadu requires over 8 lakh tonne of maize a year, the state’s overall yield is only 3 lakh tonne. The balance is procured from Karnataka.

But, this year, there are not enough stocks there too, said B Soundararajan, MD, Suguna Poultry Farms (SPFL).

As per the new agreement of contract farming, farmers could get a minimum support price (MSP) of Rs 560 for a 100-kg bag. Leading poultry firms such as SPFL and Pioneer have shown interest in this initiative that would benefit farmers and poultries.

Normally, traders procure maize at Rs 450-Rs 500 a quintal and sell with a hefty margin after storing it for a month or so.

Under the new agreement, the poultry units would procure the produce at farms itself. Farmers who have registered under this arrangement could get Rs 10 above the prevailing market price.

Meanwhile, the price of maize crossed Rs 750 a quintal in Udumalpet Regulated Market, the largest market for maize in the South.