Egg body demands ban on maize exports

The National Egg Co-ordination Committee (NECC) has demanded an immediate ban on the exports and futures trading of maize as the prices of the grain, an important poultry feed, are rising to exorbitant levels. A statement issued by the NECC said a handful of multi-national companies, private traders and exporters were cornering huge quantities of maize, withholding the grain from the domestic market.

The statement said that though the volume of exports per se might not be significant compared to the total production of about 13 million tonnes, the fact that exports were taking place had affected the market sentiment. It charged the private traders with holding on to large stocks in anticipation of export orders.

According to NECC, maize prices were ranging between Rs 500 and Rs 550 a quintal till 2005-06. From mid-2006, the prices saored to Rs 900 a quintal. In some parts of the North, the prices were as high as Rs 1,000. Such a steep rise of 90-100 per cent over the previous year was never seen in the last 35 years by the poultry industry. In the past, maize prices used to be lower in the harvesting season and then increase slightly thereafter. But, during the last two years, the prices ruled higher even during the harvesting season, the statement noted.

It pointed out that the increase in prices had not benefited the maize growers, but instead helped the private traders, who bought at low prices during the harvest season and subsequently hoarded and jacked up the prices.

The prices of soyameal, another essential poultry feed, particularly for broilers, also increased from about Rs 8,000 a tonne to Rs 17,000 during the last three months, NECC said, attributing the rise to global shortage and a consequent surge in exports.

Non-availability and high prices of the two important feed ingredients are threatening the very survival of poultry farmers, particularly the small farmers, who account for nearly 90 per cent of the country's total output, the statement added.

The committee has, therefore, demanded that the government should intervene and channelise maize exports through a designated government agency such as the State Trading Corporation, and totally ban exports by private traders.

This, according to NECC, will put an end to hoarding in the name of exports and to speculation in the forward markets.