Sri Lanka’s poultry industry has run into a grave crisis with middlemen creating an artificial shortage of maize, a key ingredient in poultry feed, to push up prices following the recent ban on imports, trade sources said last week.

Maize has now shot up to 37 rupees per kilo in the local market from about 28 rupees prior to last month’s import restrictions, the sources pointed out.

"We will have to call it a day if this hoarding by unscrupulous traders continue", warned a senior official of Golden Coin Feed Mills, the market leader in poultry feed in Sri Lanka.

"This is ridiculous", he said. "How can we give into the dictates of black-marketeers and remain viable in the industry?"

"If maize farmers benefit, then we are prepared to pay a few rupees more to improve their livelihoods", he noted. "But, we are facing a grim situation where an entire industry is being held to ransom by racketeers".

Golden Coin Feed Mills, a multi-national company, produces 8,000 metric tones of poultry feed per month.

"We produced 12,000 metric tones earlier, but have now cut down on output because the industry has shrunk", he said. "It will be increasingly difficult to push ahead with maize prices going through the roof".

More than 40% small-time poultry producers have put up shutters as they can no longer remain competitive in this scenario, said Dr. D. D. Wanasinghe, President, All-Island Poultry Association.

"There is now a dearth of chicken in the market due to the shortage of maize and other related industry issues", he said. "We are in deep trouble".

"We have communicated with the Livestock Development Ministry, but no relief has been forthcoming", Dr. Wanasinghe complained. "The industry is on the verge of collapse".

He said that last week’s price of maize was in the range of 38-39 rupees per kilo. "It’s all gone haywire".

"There is no problem — maize is available in the local market for purchase", assured Sunimal Senaratne, the Livestock Development Ministry’s Secretary.

Local production is sufficient to meet the 200,000 metric ton demand per annum, he explained. "There are adequate stocks".

When told that producers are complaining of soaring prices due to hoarding, he replied, "As far as I am aware, there are adequate stocks in the market".

He said the government decided to halt the import of 80,000 tons of maize per annum from India with the primary objective of protecting local farmers. "This is part of the national initiative to grow more crops".

"It is not the farmers who had benefited, but mudalalis who had stockpiled the produce to make a fast buck", Dr. Wanasinghe pointed out. "They call the tune".

The Maize Producers’ Association has also not quoted a price on their stocks, he asserted. "We have been constantly in touch with them".

Despite production costs zooming, poultry producers cannot adjust prices due to an upper ceiling of 320 rupees per kilo of processed chicken in the market, he complained. "We have to stick to this price under the law".

"Chicken is in short supply", an official of a key supermarket chain complained. "We have only one brand for sale".