February 11, 2011

Pakistan's chicken prices increase in three days

Pakistan's chicken meat prices have risen by PKR30 (US$0.35) per kilogramme in three days due to Eid-e-Milad-un-Nabi festivities and beginning of marriage season in Punjab.

It has risen from PKR135 (US$1.59) per kg to PKR166 (US$1.96) per kg in retail market of the provincial capital without any government check or control.

Former President Pakistan Poultry Association (PPA) Abdul Basit said Monday (Feb 7) that increase in chicken prices dictated by the market forces of demand and supply has become an annual ritual with kicking of marriage seasons and annual religious festivities.

He said 25,000 poultry farms across the country produce three million chicks daily and contribute PKR400 billion (US$4.71 billion) to the poultry sector every year. Livelihood of 1.5 million households is linked with the poultry farming and chicken meat trade. He said chicken meat is an alternative to mutton and beef because of its availability and affordable price. He said price of chicken meat at PKR166 (US$1.96) per kg is still PKR100 (US$1.18) less than the price of beef. He said that the PPA is concerned over imposition of 3.5% withholding tax on trading of agricultural produce as it would result in increase in the prices of poultry feed and chicken meat.

He said agricultural produce constitutes 60-65% of the poultry feed and imposition of withholding tax would result in increase of PKR35 (US$0.41) in the poultry feed bag and an addition of around PKR7-8 (US$0.08-$0.09) per kilogramme in the chicken meat prices. Basit, an expert of poultry farming and trade, urged the government to exempt the poultry industry from the proposed Reformed General Sales Tax (RGST) as it is agro based industry and providing cheaper meat to fulfil the protein needs of the masses.