KARACHI: Rates for corn, which makes up 60 percent of the feed for poultry, have skyrocketed to Rs3,600 per maund in Punjab from Rs2,200 at the start of the season (March/April), according to well-placed market sources, an increase of almost 64 percent.
These sources told Business Recorder that at the start of harvest season the price of corn was around Rs2,000 to Rs2,200 per maund. Now, even at Rs3,600, quality corn is not available.
Feed mills – where raw agricultural ingredients are processed into animal feed – are suffering due to a lack of corn. Poultry farmers are requesting the government to allow corn imports to keep chicken meat prices in check. They also want that corn stockists, unless they are feed mills, should be asked to liquidate their stocks immediately.
Talking to Business Recorder, Seatrade Group of Companies Chairman Muhammad Najib Balagamwala explained that ever since former federal minister for national food security, Sikandar Hayat Khan Bosan, levied a 30 percent regulatory duty on corn imports, prices of corn have been on the rise.
He said that as farmers suffer from losses due to floods, corn stockists who have already bought corn from farmers are selling them at high prices.
“Owing to floods, we see corn prices which touch Rs3,800 per maund, which will cost chicken prices to shoot up.”
He said it is imperative that the government reduces duty on corn imports so chicken prices and feed prices do not go up. He believes corn rates should stay at around Rs3,000 per maund or less.
He added that “if a decision is not taken within this month, we will see that feed prices for chicken will go up, or there will be no feed.”
Corn is the most important component of poultry feed. At least 300,000 metric tonne (MT) of corn should be allowed to be immediately imported to keep inflation in check and the regulatory duty removed, Balagamwala said.
Owing to reduced soyabean meal prices still there is some respite, but then soyabean meal only makes up 14 percent to 15 percent of poultry feeds.
Meanwhile, progressive growers – farmers who adopt modern, science-based, and innovative practices – said 90 percent of corn is produced in Punjab, 7 percent in Sindh and hardly 3 percent by the rest of the country.
Corn sowing requires a temperature of 35-40 degrees Celsius.
They say the corn shortage must be handled immediately to support feed mills and poultry farmers, and above all benefit local consumers who are fond of chicken meat.
Chicken – already sold at higher prices in Karachi – will go up further, they predicted. Chicken meat prics currently range from Rs630 to Rs1,050 in the port city.
