Duty Free Maize Imports The Lifeline Poultry Industry Needs to Survive Soaring Prices

Pune: The poultry industry in India is facing significant challenges due to skyrocketing maize prices, driven by its increased use in ethanol production. As a result, industry leaders are requesting the central government to allow duty-free maize imports under the open general licence (OGL) to alleviate the burden.

Maize is a critical input for the poultry sector, which consumes nearly 60% of the maize produced in the country. However, prices have surged by 18% year-on-year, far outpacing average inflation rates. This increase cannot be absorbed by the industry without raising the prices of chicken and eggs, according to the Poultry Federation of India (PFI).

While the government has permitted the import of around 5 lakh tonnes of maize under a tariff rate quota (TRQ) with a 15% duty through state agencies, the poultry industry argues that this will not only be costly but also slow due to the involvement of state entities. The Livestock Feed Manufacturers and Welfare Association of India (LFMWAI) has thus appealed for zero-duty imports to ease the strain on the industry.

Adding to the complications, India does not allow the use of genetically modified (GM) maize, limiting available sources to non-GM varieties from countries like Ukraine, Myanmar, and some African nations.

The government has been promoting the use of maize for ethanol production, offering the highest price of ₹71.85 per liter among various feedstocks. Despite a modest increase in maize production to 34.6 million tonnes in 2023-24, the poultry sector, which consumes approximately 18 million tonnes, is struggling to secure adequate supplies.

“The current off-season and the control of maize stocks by traders have exacerbated the price hike,” said KG Anand, General Manager of Venky’s India. “Additionally, the establishment of new ethanol plants has significantly increased demand.”

Some industry players have suggested that the government provide subsidized rice from the Food Corporation of India (FCI) stocks to offset the maize shortage. While limited imports from Myanmar have been occurring, supplies are expected to dwindle soon.

As the industry awaits the government’s response, the pressure to find a viable solution to the maize shortage continues to mount.