Godrej Agrovet, IB Group cut poultry feed prices as govt let more import of soymeal.
After the government decided to let more soyabean meal into the country, companies that make chicken feed like Godrej Agrovet and IB Group lowered their prices. Likely, other feed makers will do the same.
Along with maize, soyabean meal is one of the most important parts of chicken feed. Feed prices have been going up for the past few quarters, which hurts poultry farmers because soymeal and maize prices have also been going up.
Godrej Agrovet has cut the price of feed by between ₹2,000 and 2,500 per tonne, depending on the region and the amount of soyameal used, according to Sandeep Singh, CEO of the company’s Animal Feed business. The drop in feed prices will help some poultry farmers, but not all of them, because egg prices are still below the cost of production, said Singh.
Singh also said that the cost of feed is directly linked to the cost of soyabean and maize after it has been shipped, and that the feed industry tends to pass this cost on to farmers in a clear way. Singh said that over the past two weeks, Godrej has cut the prices of feed three times in states like Bihar and West Bengal, where the new maize crop has hit the market.
Since the Centre allowed more imports at the end of April, soyameal prices in Indore have gone down by about ₹4,000–5,000 and are now between ₹52,500 and 53,500 (ex-factory).
Other expensive things
Prices for soymeal and maize have been going up, which has caused feed prices to go up over the past two years. Prices for premixes, minerals, and amino acids, which are used to make compound feed, have also gone up by 20–25%. Singh said that the amount of soyameal in the meal varies from 15% to 35% depending on the category and how innovative the companies are when making the feed.
Bahadur Ali, the founder and managing director of IB Group, which is one of the biggest poultry companies in the North, said that his company has cut the prices of feed by about 7–8%. ‘The price of soymeal has dropped by about 10%, and every feed company has to lower their prices because it’s a commodity market. Ali, who is also the head of the All India Poultry Breeders Association, said that the prices of feed are changed every week based on the prices of other goods.’
The Soyameal Processors Association of India (SOPA) said on Tuesday that soymeal imports during the period from October to April of the oil year to September were 4.4 lakh tonnes, compared to 0.09 lakh tonnes during the same period last year. The amount of soyameal made from October to April is estimated to be 36.72 lakh tonnes, which is 33% less than the 55.07 lakh tonnes made during the same time last year.