NECC seeks moratorium on loans payments by poultry farmers

Thousands of small and marginal farmers have already closed down or suspended their farming operations

Poultry industry and the farmers engaged in the business are facing problems due to an unprecedented increase in cost of essential feed ingredients like maize and soya meal. Since last two years, the price of soya meal has been constantly on the rise and has now reached unaffordable levels, due to various reasons beyond the control of farmers, such as forward trading, exports, and, speculation and manipulation of price by traders and multi-national companies.

However, National Egg Coordination Committee (NECC) has appealed to the government to grant a moratorium on payment of interest and loans availed by poultry farmers for a period of one year. According to NECC, farmers are facing a severe crisis for the past two years, due to an unprecedented increase in the cost of essential feed ingredients like maize and soya meal.

Thousands of small and marginal farmers - representing 20 per cent to 30 per cent of the industry - have already closed down or suspended their farming operations, as they are unable to feed their birds and meet the overhead costs of sustaining the operations. Most of the farmers are on the verge of insolvency, NECC said in a statement.

According to the committee, the price of soymeal had increased from from Rs 2,800 per quintal in April 2012 to Rs 3,980 per quintal in April 2013 and has increased further to Rs 4,225 per quintal in April 2014. By May 2014, the price has gone up to Rs 4,670 per quintal. There is also apprehension that soyabean production this year could be hit due to deficient rainfall, leading to higher price in the coming months.

Due to the steep increase in input cost, the average cost of production for eggs has gone up from Rs 2.60 per egg last year to Rs 3.50 presently.

Also, the average cost of production for broilers has increased from from Rs 51 to 52 per kg live weight last year to Rs 67 to 68 presently, whereas the average farm-gate price is Rs 57 to 58, resulting in a net loss of Rs 10 per kg live weight for the farmers.

According to NECC, India has a annual eggs production of 65000 million eggs and 3.8 million tons poultry meat is a second largest egg producer and third largest broiler producer in the world.