August 3: Nepal has made a remarkable progress in production of poultry and animal feed within the country. Entrepreneurs claim that the country has become self-sufficient in production of poultry feed within a period of two decades.

But even now, most of the raw materials are imported. According to Jagdish Prasad Agrawal, chairman of Nimbus Group, the first industrial establishment to start commercial production of poultry feeds, a grain industry requires investment of at least Rs 1 billion. 

At present, the number of such industries has reached 35. Some industries have expanded their production units in different places. Agarwal says that more than Rs 35 billion has been invested in production of poultry feed.

Operator of OCB Feed, Suresh Rungta, says that the consumption of poultry feed has skyrocketed with the expansion of poultry business in Nepal.

"Currently, the market for poultry feed has reached Rs 100 billion annually. The market consumes 1.8 to 2 million metric tons of feed annually," said Rungta. 

Agarwal estimates that the investment will be more than Rs 1 billion if the animal and poultry feed and other related industries are included. Initially, the poultry industry that produced chicken feed has started producing animal feed as well. 

Many industries have even produced soybean oil to produce raw materials for poultry feed. Probiotech Industries, operated by Nimbus Group in Birgunj, has run a soybean oil industry. 

Five other such industries have been established in Birgunj and Biratnagar. Agrawal claimed that the feed market has increased 10 times in the last two decades. 

Industrialist Rungta says that although the country has been self-sufficient in production, majority of feed production industries depend on imports for raw materials. The raw materials such as maize and soybean for producing feed are mostly imported from India and third countries. 

Different chemicals used for feed production are also dependent on import. The industrialists also complained that permission has to be obtained from various agencies for the import of raw materials and it becomes costly due to the lack of implementation. 

An importer said it took an unexpected time to get permission from the Department of Livestock Services, the Department of Food and Quality Control and their office in the checkpoint to import raw materials. 

The importers say that delays in the name of permission and seen/unseen costs have increased the cost of production. Rungta says that it will take at least four to five extra days to clear the truck from the customs.