NEW DELHI (Commodity Online): Maize(corn) futures may climb at National Commodity and Derivatives Exchange of India (NCDEX) as Indian poultry industry which consumes 50% of the domestic maize production is expected to grow at an annual rate of 20%, according to Associated Chamber of Commerce and Industry (ASSOCHAM).
Presently, all Maize contracts at NCDEX are trading up on increased poultry sector demand for the commodity. Last week, the most actively traded November Maize contract rose 4.50% on week to Rs 1090.50 on Saturday.
Meanwhile, On CBOT, the corn futures ended on higher note as on Friday on having strong foreign demand and also the traders expection over China, who may continue to buy the commodity.
An ASSOCHAM study ‘Trends In Domestic Poultry Segment’ pointed out that the industry will grow 20% annually and is expected to cross 1.32 lakh crore by 2015 which in turn raising the demand for poultry feed mainly maize.
The study highlights that the domestic demand for broiler meat and eggs has risen and currently the poultry market is estimated at about Rs 49,000 crore. Maize accounts for the over half of total production cost of poultry feed and the poultry sector consumes over 50 per cent of total maize production in the country.
India produces around 3 million tons of broiler meat and about 2.86 million tons of eggs annually and South India accounts for the majority of the total poultry production.
According to D.S. Rawat, secretary general, ASSOCHAM, the upswing in the poultry industry in India is due to the changing food habits, rising purchasing power and contract framing and urbanisation.
Significant breakthrough in poultry science and technology together with breeding of genetically superior birds capable of high production, manufacturing of high-tech poultry equipments are key reasons for growth in egg, meat production.
According to the study, there are excess of opportunities for foreign direct investment (FDI) in the poultry sector in areas like breeding, medication, feedstock, vertical integration and processing but lack of infrastructure like power and transportation are major turn off in this aspect.
“But sporadic bird flu outbreaks in different parts of the country along with lack of storage and processing facilities and rising prices of feed stocks including soymeal and maize have severely hit the poultry exports,” said Mr Rawat.
India is the third largest egg producer and fourth largest broiler meat producer in the world. Nearly two crore farmers (including agrarian farmers) are employed in poultry industry. Currently, there are about 1,000 hatcheries operating across India.
In NCDEX, Maize November contract traded up 1.74% or Rs 19 to touch Rs 1109 and October contract traded up 1.55% or Rs 15.50 to reach 1002 in the afternoon trade on Monday.
