Poultry industry calls for tax cuts on maize imports to stabilise prices

Monday, 17 February 2025 05:45 - - {{hitsCtrl.values.hits}}

Urges Govt. to remove or reduce Rs. 25 per kilo maize tax in Budget 2025
Warns of rising egg and chicken prices during Sinhala-Hindu New Year if tax remains
Highlights import tax on maize raises production costs, impacting poultry prices
Calls for livestock farmer support similar to paddy farmers via subsidies, compensation
Proposes using surplus food unfit for human consumption as alternative animal feed

The poultry industry recently called on the Government to remove or reduce the Rs. 25 per kilo tax on imported maize in the upcoming Budget, warning that failure to do so could lead to a sharp increase in the price of eggs and chicken during the Sinhala-Hindu

New Year season.

All Ceylon Poultry Traders’ Association Chairperson Mathali Jayasekara urged policymakers to reassess taxation policies that impact the cost of animal feed.

“If the tax on maize is reduced or eliminated, we are ready to provide eggs and chicken meat to the public at significantly lower prices,” he told journalists. The poultry sector, a key component of Sri Lanka’s food supply chain, has long struggled with high input costs, exacerbated by import restrictions and rising feed prices. Maize, the primary ingredient in animal feed, is particularly scarce.

Sri Lanka requires approximately 600,000 metric tons of maize annually to sustain its poultry and egg production, yet local production only meets about half that demand. The remaining 300,000 tons must be imported, subject to hefty taxes that drive up costs for farmers. Jayasekara explained that past shortages in domestic maize production had prompted the Government to introduce taxes on imports, significantly increasing the cost of feed.

“When production costs rise, it is inevitable that prices of eggs and chicken meat will also increase,” she said. “We already pay Rs. 6 in taxes per egg and Rs. 250 per kilo of chicken, which further inflates market prices.”

At present, eggs are priced between Rs. 28 and Rs. 32 per unit, whilst chicken meat costs Rs. 790 per kilo without skin and Rs. 1,100 with skin. Without immediate intervention, these figures could climb further in the coming months.

Beyond taxation, the Association is calling for broader Government support for livestock farmers, akin to the subsidies provided to paddy farmers, including fertiliser subsidies and compensation for crop damage.

“The Government supports paddy and agricultural farmers, but livestock farmers receive no such assistance. If the poultry industry is to remain viable, it must be afforded the same level of policy attention,” Jayasekara noted.

As an alternative to high-cost imported maize, the Association has proposed utilising surplus food products that are deemed unfit for human consumption.

Instead of destroying such food, they argue it should be processed into animal feed through a Government-led initiative under the National Livestock Development Board. This, they contend, would not only reduce dependency on maize imports but also contribute to the national economy by minimising food waste.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.