Rising demand for maize from ethanol manufacturers has sharply increased poultry feed costs, placing severe financial pressure on poultry farmers in Namakkal, one of the country’s leading egg-production centres.

Maize, a primary ingredient in poultry feed, now costs about Rs 30 per kg, compared with Rs 22 a year ago. Poultry farmers attribute much of the increase to larger quantities of the grain being diverted for ethanol production.

Although the diversion began about two years ago, the quantity supplied to ethanol plants has reportedly increased substantially this year.

The poultry sector has not yet encountered an acute shortage, but farmers fear supplies may come under pressure if ethanol manufacturers continue procuring maize in larger volumes.

Namakkal’s poultry industry depends heavily on maize transported from Uttar Pradesh, Bihar and Karnataka. Farmers have also alleged that some traders are withholding stocks from the market to create artificial scarcity and drive up prices.

The crisis is not limited to maize. Prices of several other ingredients and supplements required for poultry feed have increased steeply over the past year.

Soya, which previously cost around Rs 30 per kg, is now being sold for Rs 60 or more. Phosphorus, an imported mineral used in poultry nutrition, has registered a threefold increase, rising from approximately Rs 30 per kg to Rs 90. Prices of lysine and methionine, essential amino acids added to poultry feed, have jumped from nearly Rs 150 per kg to about Rs 800.

A considerable portion of these feed supplements is imported from China. Industry representatives have linked the increase to higher shipping and freight costs caused by disruptions associated with the Gulf war.

Despite escalating input expenditure, farmers have been unable to secure remunerative prices for eggs and broiler chickens.

The farm-gate price of an egg currently stands at around Rs 5.20, while its estimated production cost is nearly Rs 5.50. This means poultry farmers are losing about 30 paise on every egg sold.

Broiler producers are experiencing even larger losses. The farm-gate price of broiler chicken is about Rs 80 per kg, substantially below the estimated production cost of Rs 110.

Egg demand has remained weak during the Shravan month, when many consumers avoid non-vegetarian food. Poultry farmers hope consumption and prices will improve with the onset of winter, but continuing increases in feed costs could prolong the sector’s financial distress.