Restriction on maize imports boomerang; Chicken in short supply, prices soar

by Lal Gunesekera

(February 13, 2009) The restricted import of maize has boomeranged on the local maize growers, chicken farms and the consumers. There is no doubt a shortage of chicken in the country which may continue till after the Sinhala and Hindu New Year in April. Even the large Super Markets like Cargills Food City and Arpico reported of a shortage of supplies. The controlled price for a kilo of chicken is Rs. 320, but in the open market it's priced at Rs. 460.

The President of the Poultry Producers Association, Dr. D. D. Wanasinghe, told The Island yesterday that according to government statistics, there were 75,000 families involved in poultry farming in addition to about 100,000 people who are involved in the industry.

"One million people are dependent on the poultry industry, which is mostly a self employment scheme. According to our information, 25 to 30 per cent of poultry farmers have closed shop. A majority of there are small scale farmers," said Dr. Wanasinghe.

He said that big timers in the business like Bairaha, Prima, Maxies, CIC, Pussella, etc., who have made large investments with some employing about 700 people are "just floating". He further said that there has been no growth in the industry since 2005 and since 2007, there is a backward trend in the poultry industry.

Dr. Wanasinghe told The Island that the maximum retail price of Rs. 320 a kilo of chicken, was set in July 2008 and that there was a clause to state that this price will remain for one year.

"From 2008, the cost of production has increased in leaps and bounds. In December last year (2009), we requested for a revision in the price and suggested Rs. 367. We gave all the necessary details to the Consumer Affairs Authority (CAA).

We were called for a discussion on this matter on January 29. The (CAA) never discussed the cost of production. They then wrote to us two days later and refused our request for a price increase to Rs. 367", said a disgruntled Dr. Wanasinghe.

He further told The Island that 50 per cent of the poultry feed was maize, which was Rs. 37 a kilo, but sold at Rs. 57 in December last year (2009). He said: Import of maize was banned, but middlemen hoarded it and kept on increasing the prices.

"The off season for maize harvesting is from September 2009 to end February this year. We need 40,000 metric tons, but finally the authorities allowed only 20,000 metric tons of maize to be imported. In addition to the usual Cess and VAT, they added an extra import duty of 15 per cent of CIF. An imported kilo of maize is Rs. 52 to Rs. 55, while the local middlemen charge Rs. 57 a kilo. The quality of the imported maize too is poor", said Dr. Wanasinghe.

He further said that both the CAA and Ministry of Livestock Development have ignored the requests made by the Poultry Produces Association with the CAA encouraging "wrong practice".

Posted in food security