TAD NewsDesk, New Delhi: A rise in soya meal cost which is the most covers the most important animal feed has led to an increase in the price of Poultry prices by 50%.
The price of this soya meal has increased 82% in the past months but the most drastic change has been in the previous month when it has risen to 28% and Poultry has become costlier by 32% in a month.
Soya meal, which is obtained after crushing the soyabean, is used in animal feed. High-protein soya meal is now selling at Rs 67 per kg, compared with around Rs 52 at the beginning of March.
Soymeal has a 30% share in the feed composition. In March last year, soymeal was trading at Rs 30 a kg in the Indore market.
Due to lockdown and Covid 19, the Indian Poultry Industry faced a major loss of around Rs 26,000 crore. And the impact was :
“Speculators have entered the market hoping that they will make money from soybean trading. Nearly 50 lakh tonnes of soybean have been crushed in the period October–March. We are now left with 25 lakh tonnes of soybean to be crushed till the new crop arrives in the market. This is why speculators have become active” said
Anmol Feeds managing director Amit Saraogi.
BV Mehta, executive director of Mumbai-based Solvent Extractors Association of India, said:
“Speculators have entered the market hoping that they will make money from soybean trading. Nearly 50 lakh tonnes of soybean have been crushed in the period October–March. We are now left with 25 lakh tonnes of soybean to be crushed till the new crop arrives in the market. This is why speculators have become active.”
During October-February from a year earlier, exports of soybean meal have gone up by almost four times owing to strong global demand. According to the Soybean Processors Association of India (SOPA), shipments totalled 14.35 lakh tonnes during the period, compared with 3.65 lakh tonne a year earlier.
Mr Amit Saraogi added,
“All these are impacting the price of the feed cost which has gone up by 25% in the last one year. We have no room to increase prices further as we may lose customers. We are absorbing the increased price.”
He suggested that the government should allow import of soya beans that are not genetically modified seed at zero percent import duty . Moreover, primarily the export of soy meals should be stopped to normalize the prices in the domestic market.