Poultry industry getting back to normal

The poultry industry in Karnataka is back to near normal in terms of chicken offtake. Vendors are seeing the customer returning, though not in long queues, across the state.

However, the losses suffered by the poultry units in the state are estimated at Rs 300 crore since the outbreak of bird flu in neighbouring Mahatrashtra in mid-February.

"Our situation is slightly better now as there is a buying interest across the major markets in the state. We are witnessing nearly 60 per cent of the sales of the total production in the state. Consumers are slowly returning to the market," said Nanda Kumar, chairman, Karnataka Hatcheris Association.

He said that the inventory pileup has been cleared as producers resorted to reduction in the production. The drop in the rates also helped the industry attract low income consumers into buying more during the crisis days. Presently, chicken production has been cut by as much as 50 per cent in the state.

As of Tuesday, chicken sales rose to 55-60 per cent of the production in the state. As against the daily production of about 10 lakh kgs of chicken in Karnataka, nearly 4 lakh kgs of chicken production has been cut.

Nanda Kumar said That at present prices are ruling at Rs 28 per kg (farmgate) as against Rs 35-38 before the outbreak of bird flu in Maharashtra. However, at the retail level prices are hovering at Rs 45 per kg. The prices had hit an all time low of Rs 8 per kg in most of the markets last month.

The state has also seen its exports to Kerala returning to normal. However, Goa continues to stay away from poultry products from the state despite efforts from the state government to create awareness on that the produce from Karnataka is safe from any disease.

The situation with egg sales is still not satisfactory. Eggs are presently being sold at Rs 90 for 100 eggs (farm gate), while the optimum rate was Rs 130 per 100 eggs. Karnataka produces an average of 1.25 crore eggs a day. However, the state presently produces about 95 lakh eggs, of which only 75 per cent is being sold, said Sainath, chairman, National Egg Coordination Committee, Karnataka zone.

Meanwhile, the industry is yet to get the full benefit of reduction in interest rates charged by banks on existing loans. The Reserve Bank of India had directed all banks to reduce the interest rate on existing loans taken by poultry units to 5 per cent from the earlier 9 per cent. Despite the direction from RBI, many banks are yet to pass on the benefit to the units as the circular has not reached them, he said.

The industry associations with the help of the state government conducted free chicken and egg melas in Bangalore, Hubli, Davanagere, Mysore, Kanakapura and other places to convince consumers that the chicken produced in the state was safe.

In each of these cities more than 25,000 people were given free chicken and eggs to convince them that consuming the stuff was safe.