The Cabinet Committee on Economic Affairs (CCEA) has approved a substantial increase in the Minimum Support Price (MSP) for 14 kharif crops for the 2025–26 marketing season. While this aims to boost farmer incomes, the ripple effects are significant for maize-dependent sectors like poultry, ethanol, and starch manufacturing. Maize, a critical poultry feed component, will now cost INR 2,400 per 100 kg, up from INR 2,225.
The poultry sector, in particular, is feeling the pinch. Sanjay Nalgirkar, president of the Poultry Breeder & Farmer Association (PF&BA) in Maharashtra, expressed deep concern: “The MSP declared by the government shows around 7% increase in maize prices and a 9% hike in soybean seed prices. 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.” Nalgirkar further emphasized the imbalance: “There is MSP for our inputs but none for poultry products. Poultry consumes almost 60% of soya and 50% of maize produced in India.” Without export relief, the industry faces rising input costs and stagnant selling prices, potentially curbing production.
Beyond poultry, India’s grain-based ethanol and starch industries also face sustainability risks. The maize MSP hike threatens producer margins for ethanol and increases input expenses for starch manufacturers.
As these sectors grapple with higher costs, there’s a growing call for policy reforms. Many are urging the government to consider support mechanisms for poultry products or a review of how MSP hikes affect downstream industries, recognizing their vital role in the national agricultural equation.
