September 2, 2024

High corn prices in Indore, India, squeeze poultry industries

The soaring prices and limited availability of corn in Indore, India's spot market are squeezing margins in the poultry industry and causing production losses in starch-based industries, The Times of India reported.

A reduction in local corn supplies and the lack of suitable quality have led to diminished availability for industrial use, impacting production across various sectors.

The rising corn prices have driven the cost of poultry feed to over INR 26 (US$0.31) per kg, a sharp increase from INR 20-22 (US$0.24-0.26) per kg just six months ago, according to poultry farm owners. Corn is a critical component of poultry feed, and the price hike has significantly increased the cost of rearing poultry, as noted by industry insiders.

Dinesh Makhija, a poultry farm owner in Indore, expressed concerns about the rising costs. "The cost of poultry feed has increased steeply, and this is detrimentally affecting the business. The cost of rearing has escalated, while conversely, the prices of eggs and chicken have plummeted," he said.

Poultry prices in Indore have dropped by over 17% in the past month due to reduced consumption during the auspicious Shravan month. Indore, a major trading hub for poultry products, supplies eggs and chickens to various locations across the state.

-      The Times of India