Lack of access to credit support and low awareness are stopping majority of the fish farmers going in for compound feed which can enhance production of fishes.
According to Amit Saraogi, Managing Director, Anmol Feeds, the domestic livestock feed market is estimated to be close to ₹1 lakh crore and has been growing at around 10-15 per cent, annually.
Poultry holds the majority (almost 60 per cent) share in this market at around ₹60,000 crore, while shrimp is about 10 per cent at around ₹10,000 crore. Fishery accounts for 8 per cent at around ₹8,000 crore; while dairy makes up about 20-22 per cent. Some of the key players in the market include Godrej Agrovet, Uttara Feed/Venkys, Suguna Feed and Anmol Feeds among others.
“The return on capital is much higher in case of compound feed as compared to traditional feed. However, it is the lack of awareness that is deterring farmers to adopt this,” Saraogi told BusinessLine.
A farmer, who can typically grow one tonne of fish in a one-acre of pond in a year by using traditional feed, can easily grow close to four tonnes of fish in the same pond at least twice a year. If these farmers are brought under the fold of Kisan Credit Card and given the necessary credit support, then the acceptance for livestock feed will grow.
Anmol Feeds, expecting a good scope of growth in the shrimp and fishery sector, is looking to scale up its capacity to tap the growing demand.
The company currently produces close to 1,300 tonnes a day of livestock feed across nine manufacturing units. It is looking to set up two more units and scale up its capacity by nearly 250 tonnes a day.
“We have plans to set up one more shrimp and fish feed plant. While one will come up in Bengal, the other will be on the border of Bihar and Uttar Pradesh. We expect both the plants to be operational by March 2021,” Saraogi said.
The total investment would be close to ₹60 crore, which would be funded through a mix of internal accruals and bank finance.
The company, which has a fairly good presence in the eastern and northern region, is looking to expand footprint in southern and central Indian markets.
Anmol Feeds, which has been growing at nearly 25 per cent on a year-on-year basis, had clocked a turnover of ₹500 crore in 2018-19. The company is hopeful of doubling its revenues in the next 3-4 years.
Raw material concerns
Applauding the Pradhan Mantri Matsya Sampada Yojana (PMMSY), which aims to focus on addressing the critical infrastructural gap in fisheries sector, he said it would provide the necessary impetus to develop the infrastructure of the fisheries sector and thereby lead to better productivity and efficiency and strengthen the value chain.
Maize deficit has been one of the major issues confronting the livestock feed industry.
According to Saraogi, there is 7-8 per cent deficit in maize production this year.
The price of maize, which forms a major share of the raw material for livestock feed, had been at an all-time high in the range of ₹23 a kg, primarily on account of droughts in several States as well as Fall Armyworm which destroyed crops in key growing areas of Maharashtra and Karnataka.