Indian poultry farmers push for corn import duty exemption to lower feed production costs

INDIA – Poultry farmers in Tamil Nadu, India, are urging the central government to address the rising cost of corn by increasing domestic production and removing import duties.

According to M. Balaji, coordinator of the Tamil Nadu Veterinary Graduate Federation, the poultry sector is under strain due to the diversion of corn for ethanol production.

He explained that the government’s plan to raise ethanol production from maize to 20% by 2025 has pushed up demand, making corn scarce for poultry feed.

As a result, the price of maize is expected to reach US$0.89-0.95 (₹30-32) per kilogram by July, which could force farmers to either raise chicken prices or cut production to manage losses.

Corn is a key ingredient in poultry feed, and any price fluctuation has a direct impact on the industry.

The situation is worsened by the volatility of egg prices, which makes it difficult for farmers to transfer the additional costs to consumers.

To ease the burden, the All India Distillers Association is advocating for the use of distiller’s dried grains soluble (DDGS), a by-product of ethanol production, as an alternative to corn in poultry feed.

However, experts warn that research is still needed to confirm whether DDGS is a safe and effective substitute for corn.

With concerns over feed availability growing, poultry farmers are renewing their appeal to the government to remove import duties on maize.

Demand and supply concerns

Industry estimates suggest that India’s corn demand will rise to 51.39 million metric tonnes (MMT) in 2025-26, while domestic supply is projected at 37.95 MMT, leaving a shortfall of 13.44 MMT.

Considering this deficit, Balaji stressed that removing import duties and incentivizing maize cultivation is essential to stabilizing the poultry sector and ensuring food security.

India ranks third in global egg production and fifth in chicken meat production, making poultry a crucial part of the country’s food supply and economy.

The industry was valued at US$25.3 billion (INR 2,099.2 billion) in 2023 and is expected to grow to US$55.6 billion (INR 4,620.7 billion) by 2032, with an annual growth rate of 8.9%.

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