Poultry sector hopes to break even by March

The poultry industry expects the price of chickens to rise by mid-March, once fears about avian flu are allayed. Chicken prices have crashed on fears of bird flu and fall in demand in recent weeks.

"By the second week of March, the price of chicken per kilogram (live) is expected to touch Rs 35-38 as the demand would have also picked up by then. At the moment the offtake is still very low as consumers are cautious in spite of India being declared free of avian flu," said Sanjay Kamat, manager, Compound Livestock Feed Manufacturers' Association (CLFMA).

However, prices after the predicted rise would still be lower than the price range of Rs 40-44 at which chicken were sold at prior to flu scare, but it would at least offset raising costs.

Kamat did not foresee any further rise in prices as demand would plateau during the summer.

Chicken prices are currently ruling at Rs 24-25 per kg live in Mumbai. Live broilers in the interiors of Maharashtra were selling for around Rs 17-18 per kg.

The raising cost of chicken is around Rs 32 per kg. As a result a large number of poultry farms have stopped raising till demand revives.

Consumption has plummeted to roughly 50 per cent below normal in urban centres like Mumbai and Delhi but has picked up slightly in the southern region. It has slumped to 10-15 per cent of normal in eastern India.

"The eastern region is the worst hit, as people are very wary due to the proximity to Bangladesh and other East Asian countries," said Kamat.

At the moment, the government is busy trying to assure consumers that poultry products are virus free to protect the Rs 25,000 crore industry.

The government has already slapped a ban on poultry imports to protect indigenous varieties from getting affected. It has put also in place some bio-safety measures.