High feed prices to affect profit margins of poultry farms in India

Overall increase in raw material cost has raised the cost of production of broiler chicken to Rs 80 a kg

Poultry farms in India are facing pressure on their profit margins due to a sharp increase in feed prices and their inability to pass them on to the consumers, despite a peak demand season.

The scenario has changed in the sector over the last two months. The government’s effort to protect farmers through sustained increase in the minimum support prices (MSP) has seen a rise in prices of maize and soybean. The two are used as feeds, and take up half the cost of chicken and eggs.

Maize prices have jumped 21 per cent in the last two months to Rs 2,000