Level playing field for Maize: Securing future of poultry industry

A policy perspective on competitiveness, food security and sustainable growth

- By Sunanda Abeykoon

SRI Lanka's poultry industry stands today as one of the most advanced agribusiness sectors in the country—technologically modern, fully self-sufficient, and supported by decades of investment in hatcheries, breeder farms, feed mills, broiler operations, and processing facilities.

Yet in spite of this strength, the industry is stagnant. Much of the national capacity remains underutilised, profitability has weakened, and the sector is unable to expand into export markets.

At the heart of this challenge is one critical factor: the cost of maize.

Maize accounts for more than 50% of broiler feed formulations, making it the single largest determinant of poultry production cost. Sri Lanka's domestic maize production cost averages around Rs. 150 per kilogram, far above international levels. India, for instance, produces maize at around Rs. 50 per kilogram and exports to Sri Lanka at approximately Rs. 96 per kilogram inclusive of freight.

Despite these realities, imported maize (HS Code 1005.90.00) is subject to a Special Commodity Levy (SCL) of Rs.25 per kilogram. This levy artificially inflates feed prices, distorts the market, and undermines the competitiveness of the poultry industry. As a result, feed mills, breeder farms, and hatcheries across the country operate below capacity, while investors face shrinking returns.

Foreign exchange potential of a competitive poultry export industry