🐔 Level Playing Field Needed for Poultry Exports: Maize Policy Reforms Demanded
• The technologically advanced poultry industry is stagnant, operating below capacity and unable to enter export markets due to high production costs. • Core Issue: Maize, which accounts for over 50% of broiler feed, is uncompetitive. Domestic maize averages ~Rs. 150/kg, far above imported options (e.g., India landed at ~Rs. 96/kg). • Policy Barrier 1 (SCL): Imported maize is subject to a Special Commodity Levy (SCL) of Rs. 25/kg, a non-recoverable direct cost that artificially inflates prices. • Policy Barrier 2 (Quota): Import quotas create artificial shortages, elevate market prices, and block feed mills from securing globally competitive rates. • Industry Request: Remove the SCL on maize and bring both imported and local maize under the VAT system—a neutral, creditable tax already applied to sectors like coconut oil and fabric to eliminate market distortions. • Goal: Relaxing quotas and removing SCL is essential to lower production costs, stabilise the market, allow full capacity operation, and enable the sector to pursue foreign exchange earnings as a regional exporter. • Consumer Benefit: Reforms would also help reduce consumer prices for chicken and eggs, key affordable protein sources.