The Hindu Business Line : Maize seen heading south on rising output

The area under maize cultivation during the 2002-2003 rabi season is estimated at 9.42 lakh hectares, higher by 1.22 lakh hectares over the previous season, according to the National Egg Coordination Committee (NECC).

The NECC, which has a membership of over 25,000 farmers, is the largest association of poultry farmers in the world. NECC has successfully stabilised farm gate prices to the advantage of the farmers and its promotional campaigns have resulted in an impressive growth in egg consumption.

Area under maize cultivation has been rising. There was an increase of 1.88 lakh hectares in 2001-02 and a further increase of 1.22 lakh hectares during 2002-03 rabi season.

"The shortage, we are witnessing now, is artificial as a result of hoarding by traders," Ms Anuradha Desai, Chairperson, NECC, said.

Encouragement for crop diversification by Andhra Pradesh, Punjab and Haryana Governments has resulted in higher acreage. The consequent increase in output is expected to take care of the poultry industry and other user industry's needs, according to Ms Desai.

NECC appealed to the Agriculture Ministry for waiver of duty on tariff rate quote (TRQ), not because of shortage of maize but because the situation in the domestic market will ease if there is an alternative source of supply.

This step is aimed at compelling the traders to release in the domestic market the stocks hoarded. At the prevailing import duty of 15 per cent, the landed cost of maize works out to slightly more than the domestic market and, hence, the request was made for waiver.

"We expect a positive and favourable decision in this regard. The waiver of duty under TRQ is expected at least for a limited period," she said.

Generally, egg prices decline during February and March, due to lower consumption. But from April-May onwards, with the increase in consumption, prices could go up, a trader said.

"The consumption of eggs is lower at the start of summer, while it increases thereafter. During November-January, there is an increase in consumption of eggs and so there is a slight increase in the prices too. This helps the farmers to recover their losses during the lean seasons of poor consumption," she added.

"Once the duty is waived under TRQ, the landed cost of maize will be on par with the domestic market. The quantity to be imported shall be adequate to ensure that the hoarded stocks are released into the market," she said.

Between 1979 and 1981, the cost of inputs particularly chicken feed has increased by about 250 per cent, while the price of egg remained stagnant at 33-35 paise, affecting profitability.

By 1981, over 40 per cent of the farms across the country were forced to close down, and the very survival of the egg industry was threatened.

Dr B.V. Rao decided to revive the egg industry and put it back on the path of orderly progress. With his clarion call, " my egg, my price, my life" - he brought thousands of farmers from across the country onto a common platform under NECC in 1981.

NECC has also requested to the Finance Ministry to exempt processed poultry and poultry meat products from Excise Duty and Sales Tax.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Chennai firms to test new shrimp species cultivation

Expert moots curbs on fishery exports

Budget fineprint on customs duty cut makes an impact — Trading in 10-tola gold bars comes to halt

Maize seen heading south on rising output — Hoarding blamed for current uptrend

Calibration cotton users' meet

Suguna group to foray into sericulture

CWC charged with defying vanaspati fiat