Chicken was selling at Rs 50 per kg in Soura locality of the city, which is unaffected by floods but is housing thousands of people who have fled the flood affected areas of the city.
Marriage functions had to be cancelled in most parts of the Valley due to floods in at least six districts of Jammu and Kashmir including Srinagar, the summer capital of the state.
"We are selling it below the cost price due to absence of feed.
"While we will recover some money, it will also help the people to overcome food shortage," Abdul Rehman, a poultry dealer, said.
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There was a huge rush around Rehman's truck as people wanted to grab a chicken.
"The vegetable prices have shot through the roof. Chicken right now is a cheap option to feed my family," Mohammad Shafi, a resident of Hawal, said.
"It is intrinsic to Kashmiri culture to take care of guests.
"If your relatives are in distress, the desire to make their stay all the more comfortable grows exponentially," he added.