HomeIndustry NewsAP's Poultry industry saddled with rising input costs

AP’s Poultry industry saddled with rising input costs

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Andhra Pradesh and Telangana combined contribute 40% to the national production of poultry in India and is one of the fastest-growing segments of the agriculture sector. Although consumption has increased and production remains constant, the share of poultry farming in the state has been impacted due to a few factors.

It is known that around 70% of the corn production is used for poultry and compared to other countries in the world like the US and Ukraine, India is still low in production of corn (2.8 tonnes per hectare). 

Adding to it, the centre has been diverting maize for ethanol production and this is leading to a demand-supply gap. This is leading to an increase in the input prices of maize production which will directly impact the poultry industry.

Speaking to Vizag Industrial Scan Mr Suresh Chitturi, MD Srinivasa Farms, said, “Compared to other countries, the cost of corn, soya, etc is 40% higher in India. And, the cost of raw materials for poultry farming has gone up by 300% over the last 10 years. Cities like Guntur and Krishna have a good production rate and there is a possibility to double the production with the right strategies.”

Another member of NECC added that the prices of maize and broken rice have increased in the past 4-5 months. Earlier, the price of maize was Rs 18-20 and now it stands at Rs 24-25 per kg. Similarly, the price of broken rice was Rs 17-18 and now it is Rs 25 per kg. However, the season of these crops has just begun this year and he expects the prices to come down.

Another major factor that is restricting the market for Andhra Pradesh is that states like Bengal, Bihar, Odisha, Chhattisgarh, and UP are encouraging poultry farming by providing them with subsidies. Earlier, these states used to depend on AP and TS for poultry and this move by the state governments will further impact the production cost, opined stakeholders.

“The poultry production has remained constant despite the removal of power subsidy and cancellation of interest rebate by the government,” shared Mr T Uday Bhaskar, NECC Zonal Chairman, Vizag, adding that AP stands 1st in Egg production.

He further added that the need of the hour is to increase productivity by genetically modifying the birds and improving their feed intake to ensure good bird health. Andhra Pradesh is  said to be the top egg producer in the country. 

It produces 125 crores of Egg per month (4.25 crores every day)

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