The Indian poultry industry is taking drastic measures to counteract the sharp increase in soybean meal prices, which have surged by over 40% in the past month. This essential feed component's price hike has significantly raised production costs, prompting industry leaders to reduce poultry production by 25%.
Industry-Wide Response
In a recent meeting chaired by Bahadur Ali, Chairman of the All India Poultry Breeders Association, several key industry bodies, including the Compound Livestock Feed Manufacturers Association of India (CLFMA) and the Karnataka Poultry Farmers and Breeders Association (KPFBA), discussed the crisis. The consensus was to cut production immediately to manage the financial strain.
"The increase in soybean prices is primarily due to hoarding and speculative trading," noted industry representatives.
Supply Chain Challenges
The price surge is attributed to speculative trading despite adequate domestic production. The National Agricultural Cooperative Marketing Federation of India (NAFED) has been implicated in these activities, with stockists allegedly manipulating prices.
- Breeder Stock Culling: To manage excess supply, breeder stocks are being culled, with prices dropping from Rs 140 to Rs 65 per bird.
- Import Demands: The industry is urging the government to allow the import of GM soybean meal to stabilize feed costs.
Seasonal Demand Fluctuations
The production cut aligns with a traditional decline in chicken consumption during the monsoon and festival months of July to October, including Sawan, Navratri, and Durga Puja.
Price Outlook
The industry remains hopeful for government intervention to permit GM soybean meal imports, which could provide relief. The USDA and FAO data will be crucial in assessing future supply and demand dynamics.
| Month | Soybean Meal Price Increase | Poultry Production Cut |
|---|---|---|
| May 2026 | 40% | 25% |
| June 2026 | Continuing | Continuing |
The poultry sector's future hinges on regulatory decisions and market adjustments to stabilize feed prices.
