📈 Govt Doubles Maize Import Tax: Risks to Poultry Prices

The Sri Lankan government has increased the Special Commodity Levy (SCL) on imported maize from Rs. 25/kg to Rs. 50/kg, effective from May 5 until year-end 2026. The move aims to protect local farmers but faces criticism for contradicting previous pledges to lower food taxes. • Impact on Poultry Cost: Local poultry companies anticipate a 20% increase in maize import costs. Maize constitutes roughly 40% of total animal feed expenses. • Supply Gap: Sri Lanka requires 600,000 to 700,000 MT of maize annually, yet domestic production covers only ~50% of this demand. • Protein Security: Higher input costs likely threaten the affordability of chicken and eggs, the primary protein sources for Sri Lankan households. • Historical Context: Under the previous administration, the SCL was reduced from Rs. 75 to Rs. 25 in 2023, which helped lower retail egg prices from peaks of Rs. 70 down to approximately Rs. 35–50. • Socio-Economic Concern: Analysts warn that "lopsided protectionism" may exacerbate the nation's existing protein deficiency, impacting the physical and cognitive development of children.