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  • 07 Feb, 2019
  • India

MUMBAI – The Telangana government has decided to sell 400,000 tn of maize from the 2018-19 (Jul-Jun) kharif season to poultry units in the state at 1,800 rupees per 100 kg, a huge 14% discount to the current market price of around 2,100 rupees, said Sanjeev Chintawar, manager at National Egg Coordination Committee, Hyderabad.

The maize to be sold will be supplied by the state marketing federation, which had procured around 416,000 tn of the feed grain during the last kharif season, at the minimum support price of 1,700 rupees per 100 kg, Chintawar said.

"We have received a state government letter saying it has given permission to the state marketing board to sell 400,000 tn maize via poultry associations," Chintawar said, adding that the Telangana Poultry Federation and the Telangana Poultry Breeders' Association would be responsible for the proposed sale to poultry farmers.

The National Egg Coordination Committee has an arrangement to operate on behalf of the Telangana Poultry Federation in the absence of necessary resources with the latter.

The maize sale will commence in the next 10 days, Chintawar said, adding that the Telangana poultry industry consumes around 110,000 tn of maize a month, which means the total quantity of sale equals nearly four months worth of consumption. This may drag down prices of maize across the country in the short term.

Maize accounts for 65-70% of input costs in the poultry sector. Due to a sharp rise in prices of maize this year, the industry's production costs have soared. Currently, maize is being traded at record levels of 2,100 rupees per 100 kg, up from 1,300-1,400 rupees a year ago.

Maize prices have gone up due to contention that combined output from the kharif and rabi seasons may fall 20-30% due to severe droughts in Maharashtra, Karnataka and drought-like situations in parts of Telangana and Andhra Pradesh, as all four states are key maize producers. Fall armyworm infestation in some states is also likely to add to supply worries. 

As such, the poultry sector in Telangana will have an edge in competing with neighbouring states. 

Maize output in Telangana is seen falling 9% on year to 2.44 mln tn in 2018-19 (Jul-Jun), according to the state farm department.

Source: http://www.cogencis.com/newssection/telangana-to-sell-400000-tn-of-maize-at-18-rupee-kg-to-poultry-cos/

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