Poultry sector loses Rs 500 crore on flu scare

Though it is yet to report a case of bird flu (Avian Influenza) in the country, consumers preferring to stay away or minimise the consumption of eggs and chicken for the last two-three months, have resulted in the poultry industry losing over Rs 500 crore. Industry estimates that it continues to incur a loss of at least Rs 15 crore a day.

Looking at the dire straight of the domestic poultry industry, National Egg Co-ordination Committee (NECC) has decided to approach the government asking a relief and rehabilitation package.

"Consumption of chicken in north India has dropped by 40-50 per cent and the farm gate price of broilers has crashed to unprecedented levels. The price of broiler has dropped to a low of Rs 10 per kilogram live weight, as against the cost of production of Rs 30. The situation in other parts of the country is equally distressing as the reports of Bird Flu in some of the Asian countries have led to an unwarranted and undue scare among the consumers," said Anuradha J Desai, chairperson of NECC.

There were even reports from Kolkata and other eastern India cities where price of chicken has now come down as low as Rs 40-50 per kilogram live weight against price of Rs 80-95 three months back.

A chicken and egg seller in Ahmedabad now sells mutton for Rs 140 per kg as his customers have stopped buying chicken and egg though he has reduced the price of chicken to Rs 40 per kg against Rs 90 for the same quantity before Bird Flu broke out in some countries. Situation, according to a NECC source, is now better in the south India.

NECC is now going to table its demands before the government to formulate and implement a programme for the poultry farmers by rescheduling the outstanding bank loans, reducing the rate of interest on bank loans to 2 per cent lower than PLR as contemplated in case of agricultural loans, and extending fresh working capital facilities, to enable the farmers to revive and re-start their operations.

"We will also request the government to sanction a substantial grant for undertaking a campaign to educate the consumers about chicken and eggs," Desai said.

"The poultry industry has already suffered a loss of Rs 500 crore and is losing Rs 15 crore at least per day and at this rate, the industry may collapse very soon. More than 90 per cent of the farmers are small and marginal farmers, who have lost their entire capital investment, and stand to lose their only means of livelihood permanently, unless a relief and rehabilitation package is extended to them immediately," she added.

The Rs 29,000 cr Indian poultry industry provide employment to over 3.5 million persons. "Not only, the farmers""but even those employed in the farms, and input industries like hatcheries, feed mills etc. would lose their only livelyhood."