Poultry Industry Appeals for Zero-Duty Import of GM Maize Amid Price Surge
Poultry Industry Appeals for Zero-Duty Import of GM Maize Amid Price Surge
The poultry industry is urging the central government to permit the duty-free import of genetically modified (GM) maize, citing soaring prices that are impacting their production costs. Industry representatives have addressed their concerns in a letter to Rajiv Ranjan Singh, Union Minister of Fisheries, Animal Husbandry and Dairying.
The poultry sector consumes around 60% of the maize produced in India. Recently, the prices of maize have escalated due to increased demand from the ethanol industry, which now uses more maize and rice for ethanol production.
“Maize prices have jumped from Rs 23-24 per kg to Rs 28-29 per kg because of the ethanol sector’s growing consumption,” explained a grower. “This price hike has significantly raised the production costs for the poultry industry, leading to higher chicken prices.”
Maize prices have increased by approximately 73% over the past four years, with an average annual rise of around 18%. In comparison, the poultry industry has seen an average growth rate of just 8-10%.
“We are requesting the central government to expand the import quota for GM maize from the current 5 million tonnes to at least 15-20 million tonnes. Furthermore, these imports should be duty-free to make them affordable for the poultry industry, which cannot compete with the ethanol industry under current conditions,” said an official of the Poultry Federation of India.
He pointed out that even with zero duty, the industry would still pay Rs 24-25 per kg for GM maize, which is above the Indian MSP of Rs 22.25 per kg for maize. “Currently, we are paying around Rs 26.5 per kg due to a 15% import duty. The industry prefers importing GM maize from countries like Ukraine and Brazil,” he added.
The poultry industry uses about 4 million tonnes of rice annually for feed. The government has a surplus of around 48 million tonnes of rice that could be redirected to the poultry sector.
The appeal from the poultry industry highlights the urgent need for policy changes to maintain affordability and stability within the sector amidst the rising maize prices.
