Thanks to bulk production, the chicken prices have hit an all-time low with the farm lifting rate of broiler declining to Rs 23 per kg in Punjab. |
In the retail market, however, the rate hovers around Rs 70 per kg for dressed chicken |
Decline in prices is being attributed, besides high supply, to the ongoing shradhs. For farmers, the situation is not pleasant because they are barely able to cover their costs at this rate. |
Prices of eggs, meanwhile, are on the higher side and in retail markets these are selling at Rs 22 a dozen, while the wholesale rate is around Rs 144 per 100 eggs. |
The poultry industry, post-bird flu, witnessed recession as demand ebbed to 20 per cent of normal. Dressed chicken was available between Rs 40 and Rs 50 around six months ago. |
While retailers too suffered, it was the farmers who bore the brunt. By the time the situation began normalising, poultry farmers in Punjab had already suffered losses of Rs 1 crore every day. |
Normalcy in situation encouraged farmers, who resorted to excessive production. Besides, big players like Venkys and Godrej also took up farms on contract, which resulted in a further rise in production. These companies take farms on contract and the poultry farmers only manage the farm. In return, farmers get a commission of Rs 3 to 4 per bird. |
Speaking to Business Standard, P P S Gill, general secretary of Punjab Poultry Farmers Association, said the cost incurred on feed, vaccines, etc, is more than Rs 20 per chicken, while the total cost including everything ranged between Rs 23 to 28 per kg. |
Currently, chicken is selling at just Rs 23, which means farmers are not even able to cover their costs. "Anticipating the high demand, farmers resorted to high production due to which rates have fallen drastically. As per our estimates, even in a normal situation, farmers will not be able to break even this year," he added. |
Jatinder Pal Singh, owner of Bhupinder Poultry Farm, said demand was relatively low, though the same was expected to continue for the season. |
"Prices are not likely to rise for another month or so. The demand has lowered in the past ten days and even prices have reduced. However, for this time of the year, the decline is quite expected. Excessive supply has resulted in price reduction," he said. |