Bengaluru (PTI): In a major move aimed at supporting both maize farmers and the poultry sector, the Karnataka government has officially permitted poultry feed manufacturers to purchase maize directly from farmers at Minimum Support Price (MSP)-linked rates for the 2025–26 Kharif season.
The decision comes after discussions between the Department of Animal Husbandry & Veterinary Services, poultry industry representatives, and livestock feed manufacturers. The objective: ensure fair pricing for farmers while easing feed sourcing challenges faced by poultry companies.
What Led to the Decision?
During a high-level meeting on December 1, Karnataka’s Chief Minister directed poultry feed manufacturers to explore direct sourcing from farmers. The estimated required quantity stands at five lakh tonnes of maize.
Poultry and feed manufacturers had conveyed willingness to participate, provided two key conditions were addressed:
- Moisture content suitable for poultry feed (preferably ≤12%)
- Lower advance payment requirements
In a follow-up discussion on December 2, the Karnataka Poultry Farmers & Breeders Association (KPFBA) clarified that current MSP-grade maize typically carries 14% moisture. However, they committed to procurement if quality standards are met.
To initiate the process, feed manufacturers agreed to:
- Start with 5,000 tonnes
- Make a 20% advance payment
Why This Matters for the Poultry Sector
Feed cost accounts for 60–70% of poultry production expenses, with maize being a key ingredient. In recent years, fluctuations in grain supply and pricing have made poultry farming unpredictable, especially for small and medium-scale farmers.
Direct sourcing is expected to:
✔ Reduce price volatility
✔ Improve consistent feed supply
✔ Minimize dependence on traders and middlemen
✔ Support raw material transparency and traceability
For maize growers, the move ensures:
✔ Better prices aligned with MSP
✔ Direct access to industrial buyers
✔ Reduced delays in payment cycles
Industry leaders believe this marks an important step toward a farmer–industry integrated supply chain model.
Government’s Call: Welfare + Efficiency
The official order notes that the decision was made keeping “farmers’ welfare and ease of procurement” at the forefront.
With poultry demand rising domestically and internationally, the Karnataka government views this arrangement as a strategic step to strengthen the state’s position as a leading poultry production hub.
What’s Next?
Implementation will be monitored by the Animal Husbandry Department. If successful, the model may expand to other feed crops and more states, unlocking a more stable feed ecosystem for India’s fast-growing poultry sector.
Eggora Insight 🐣
This policy shift highlights an encouraging trend: closer collaboration between farmers and the poultry industry.
For feed manufacturers, integrators, independent farmers, and hatcheries, this could mean:
- More predictable feed pricing
- Stronger supply chain reliability
- Better long-term planning capability
As the industry evolves, direct procurement models may become the norm rather than the exception.
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