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India's poultry farmers community expected that the fresh reporting of avian influenza case in Kerala have stengthened their case of opposing allowing import of American chicken legs. Kerala Animal Husbandry Department on Monday confirmed that thousands of ducks have died in Alapuzzha and Kottayam district due to Avian Influenza Virus.
On October 14, the World Trade Organisation (WTO) ruled in against the ban of Indian government on import of American poultry items citing that it violated global trade rules. Accordingly, India has to open its $300 million market to the US. India had levied restriction on the import of American in 2007 to prevent spread of the avian flu.
"The domestic industry has still not recovered from the twin strike of bird flu and high feed costs, we have requested the government that the opening up of Indian market to American will be fatal for us," an office bearer of Poultry Federation of India. He expected that the fresh case of Avian influenza will force the government to challenge the WTO ruling. India has three months to challenge the ruling.
Indian poultry farmers have been apprehensive that due to the import of frozen chicken, they would lose the frozen chicken market. " Demand for frozen chicken from the hotels and quick-service restaurants was a major source of income for us, the American imports will provide a huge blow to it," said Madan Maity, general secretary, West Bengal Poultry Federation. According to industry estimates, sale of processed chicken in India is growing at a rate of 20 percent every year.
According to the traders, after the curb was imposed, the domestic industry strengthened itself and was now exporting to Middle East countries. India's exports of poultry products increased from 516753.83 MT with the value of Rs. 314.27 Crores in 2010-11 to 577812.60 MT with the value of Rs 494.14 Crores in 2012-13. " If protection is the way domestic industry will grow, the government should do that," said Maity. An ICRA report says that the aggregate sales have increased by over 20 percent from FY 2008-13.
The traders were also up in arms about dumping of chicken legs which are unpopular in the American markets. " Subsidized by the American government, they will dump chicken legs in India, which will be tough to compete against, hence we have to reduce our price, which will ultimately harm the grassroot poultry breeders," said MCR Shetty, president of Karnataka Poultry Farmers and Breeders Association.
