Indian Poultry Industry: The revenue of Indian poultry industry is expected to grow by 8-10% in the current financial year 2023-24. This has been estimated in a report. The report said that the sector’s revenue will increase mainly due to increase in the size of trade volume and improvement in receipts. Rating agency ICRA said in a report that the revenue growth of the domestic poultry industry is likely to be 8-10% in the financial year 2023-24, due to significant expansion Will happen in trade volumes and improvement in the share of organized companies.
The report said that receipts were strong in the first half of the financial year 2022-23, but later they started declining due to excess supply. After this, due to increase in demand in the current financial year, the average realization increased to Rs 107 per kg in the first half of 2023-24, whereas in the financial year 2022-23 it was Rs 101 per kg. The report said that the festive and winter season will support demand and receipts in the rest of the financial year.
Sheetal Sharad, Vice President and Area Head, ICRA, said, while realizations improved in the first half of the financial year 2023-24 following controlled supply and healthy demand, traders’ earnings were further supported by soft fodder costs. Prices of maize, which comprises 60-65% of feed costs, have declined by 9% in the first half of 2022-23 and those of soybean (comprising 30-35% of feed costs) by 21%.
possibility of impact on revenue growth due to maize shortage
It is believed that shortage of maize, an important ingredient of poultry feed, and increase in market prices may impact the estimated revenue growth. Let us tell you that due to large consumption of corn in the ethanol industry, there is a shortage of it in the market. People associated with poultry industry are advising the government for duty free import of maize.
So far, the substantial contraction in soybean crop during the Kharif season and delay in maize sowing also have raised concerns over a possible increase in feed costs, Sheetal Sharad said, adding that poultry companies may be facing pressure on the raw material prices. There is a possibility of pressure on margins.
