The Association of Vets in Poultry (VIP), representing over 1200 veterinary professionals, has penned a critical letter to Union Minister Parshottam Rupala, imploring the government to reduce import duties on maize. The poultry sector, a key player in the Indian economy, faces financial instability and consumer affordability issues due to escalating local maize prices, constituting 60% of poultry feed.
In the plea, Dr. Ajay Deshpande, VIP President, underscores the urgency of the situation, highlighting the immediate threat to the poultry industry’s financial health. Poultry feed accounts for 80% of production costs, and the surge in local maize prices, compounded by inconsistent rainfall in major maize-producing states, is adversely affecting chicken production. Poultry farmers are selling chicken at Rs 65/kg, facing significant losses against the production cost of Rs 85/kg.
The letter reveals that the poultry sector alone consumes approximately 18 million tonnes of maize, out of the estimated 35.91 million tonnes of production for 2022-2023. India’s maize export of 3,453,680.58 MT further strains domestic availability. Deshpande argues that the current maize prices of Rs 25/kg throughout India are unsustainable for the poultry farming community.
Anticipating a further increase to Rs 28-30/kg by February 2024, the association foresees a worsening situation post that date due to uncertainties in Rabi maize production. To bridge the demand-supply gap, the industry relies on imports, but the existing 60% import duty on non-GMO maize is discouraging.
In response to the crisis, VIP urgently requests the government to consider reducing the import duty on non-GMO maize from 60% to either NIL or a maximum of 15%. Deshpande argues that previous instances of maize imports have not adversely affected local farmers; instead, they played a crucial role in stabilizing demand and supply, benefiting both farmers and the poultry industry.
Supported by a detailed calculation, the association demonstrates that reducing the import duty can significantly lower the price of non-GMO maize, contributing to a stabilized market. This adjustment aims to support the financial sustainability of poultry farmers and ensure affordable access to nutritious protein for the people of India.
Deshpande concludes the letter by acknowledging the delicate balance needed to safeguard local farmers while ensuring the economic viability of industries dependent on maize imports. He emphasizes that a strategic reduction in import duty is a necessary step to address the immediate challenges faced by the poultry sector, aligning with the broader vision of agricultural growth and the Prime Minister’s goal of doubling farmers’ income.