Tepid local demand and Oman ban hit India's poultry business
A lull in domestic consumption, continued ban on Indian eggs by Oman and costlier feed have dragged down poultry prices.
By ET Bureau | Updated:
KOCHI: A lull in domestic consumption, continued ban on Indian eggs by Oman and costlier feed have dragged down poultry prices. Most poultry farmers are selling below production cost. Egg prices have fallen to Rs 2.75-Rs2.90 apiece now from Rs3.60-Rs3.80 at the beginning of the month across markets.
“Prices have fallen in the space of a few days and farmers have been affected. Usually, prices fall slightly during the Lent season. But not to such an extent,” said Ravikumar, director of Ravi Poultry Farms. The Lent season and the onset of summer have brought down consumption.
The ban on Indian eggs by Oman, the largest buyer, has been cited as the principal reason for the drop in prices. The ban, in force since October after an avian flu attack in Karnataka, was supposed to be lifted in January. An expert team from Oman has visited India and submitted a report to the Oman government which is yet to act on it. In fact, the ban came just when the poultry market was recovering from an earlier ban imposed by West Asian countries due to another flu attack over a year ago. “For almost ten months, farmers have had a price realisation 10% below their actual cost of production. For the last one month, it has come down by 20%,” said Dr PV Senthil, secretary of Livestock and Agri Farmers Trade Association.
Oman accounts for 40-50% of Indian egg exports, which have fallen to below Rs200 crore per annum from an average of Rs250 crore.
Most of the exports take place from Namakkal in Tamil Nadu, the chief egg producing region in the country, which averages a production of over 3 crore eggs daily. High prices of maize and soya, the principal ingredients of the feed, have contributed to an increase in the production cost.
“Prices have fallen in the space of a few days and farmers have been affected. Usually, prices fall slightly during the Lent season. But not to such an extent,” said Ravikumar, director of Ravi Poultry Farms. The Lent season and the onset of summer have brought down consumption.
The ban on Indian eggs by Oman, the largest buyer, has been cited as the principal reason for the drop in prices. The ban, in force since October after an avian flu attack in Karnataka, was supposed to be lifted in January. An expert team from Oman has visited India and submitted a report to the Oman government which is yet to act on it. In fact, the ban came just when the poultry market was recovering from an earlier ban imposed by West Asian countries due to another flu attack over a year ago. “For almost ten months, farmers have had a price realisation 10% below their actual cost of production. For the last one month, it has come down by 20%,” said Dr PV Senthil, secretary of Livestock and Agri Farmers Trade Association.
Oman accounts for 40-50% of Indian egg exports, which have fallen to below Rs200 crore per annum from an average of Rs250 crore.
Most of the exports take place from Namakkal in Tamil Nadu, the chief egg producing region in the country, which averages a production of over 3 crore eggs daily. High prices of maize and soya, the principal ingredients of the feed, have contributed to an increase in the production cost.
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