The Cabinet Committee on Economic Affairs (CCEA), led by Prime Minister Narendra Modi, has approved a significant increase in the Minimum Support Price (MSP) for 14 kharif crops for the 2025–26 marketing season. Among these, maize — a critical component of poultry feed — will now see a price rise from ₹2,225 to ₹2,400 per 100 kg.
While the move aims to enhance farmer incomes, the ripple effect is being strongly felt across sectors that rely heavily on maize, especially poultry farming, ethanol production, and starch manufacturing.
Poultry Sector Feels the Pinch
In Maharashtra — one of India’s poultry hubs — the Poultry Breeder & Farmer Association (PF&BA) expressed deep concern. “The MSP declared by the government shows around 7% increase in maize prices and a 9% hike in soybean seed prices,” said Sanjay Nalgirkar, president of the PF&BA. “With a likely decline in soybean crop due to last year’s low prices, we anticipate a 7–8% rise in feed costs in the coming year, which will make poultry business unremunerative.”
This is especially worrying because poultry farmers don’t receive any price support for their final products. Nalgirkar emphasized, “There is MSP for our inputs but none for poultry products. Poultry consumes almost 60% of soya and 50% of maize produced in India.”
With no export cushion — as global rates for soya and maize are on par or lower — the domestic sector is trapped between rising input costs and stagnant selling prices. This imbalance could lead to reduced poultry production, which ironically may prevent the government from achieving its own MSP procurement targets.
Ethanol and Starch Industries Also Impacted
India’s grain-based ethanol sector, already under pressure, warned of sustainability risks due to the maize MSP hike. While government efforts have aimed to increase maize-based ethanol blending, ethanol procurement prices have not kept pace with rising raw material costs, threatening producer margins.
Starch manufacturers are facing similar issues. Heavily reliant on maize, this sector is also bracing for increased input expenses, which could impact product pricing and profitability.
What’s Next for Poultry Farmers?
As poultry farmers brace for higher feed costs without guaranteed returns, the industry continues to call for policy reforms. Many are urging the government to consider a support mechanism for poultry products — or at least a review of how MSP hikes affect downstream sectors.
With poultry farmers accounting for a major share of India’s maize and soya consumption, it’s clear that their viability must be part of the national agricultural equation.
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