Tamil Nadu poultry farmers face rising costs due to maize diversion

Poultry farmers in Tamil Nadu, particularly in the Namakkal hub, are facing significant financial distress due to rising feed costs. A primary driver is the diversion of maize to ethanol production, which has seen increased volumes allocated to the industry this year. Consequently, maize prices have risen from approximately Rs 22 per kg to Rs 30 per kg over the past year.

In addition to maize, farmers report sharp increases in other essential feed components. Soya prices have doubled from Rs 30 to over Rs 60 per kg, while phosphorus has tripled from Rs 30 to Rs 90 per kg. Essential amino acids, such as lysine and methionine, have also seen massive surges, with methionine rising from Rs 150 to Rs 800 per kg. Some price hikes are attributed to increased shipment costs linked to the Gulf war.

Despite these soaring input costs, market prices for poultry products remain low. The farm-gate price for an egg is roughly Rs 5.20 against a production cost of Rs 5.50, resulting in a loss per unit. Similarly, broiler chicken is selling at approximately Rs 80 per kg despite production costs estimated at Rs 110 per kg. While some farmers expect prices to improve after the Shravan month, there are growing concerns regarding future maize supply stability.