March 4, 2004

 

 

India Poultry Industry Badly Hit Despite No Bird Flu Cases

 

Chicken prices in India have fallen to an all time low despite the country having no reported bird flu cases.

 

Price of live chicken has dropped to Rs 18 per kg from Rs 30 while that of dressed chicken slid to Rs 40 from Rs 60 in the city in the last few months. The scare associated with the epidemic has kept people away from their favourite dish, forcing retailers to cut prices, industry sources said.

 

"Though there is no trace of avian influenza virus in India , people are treading a cautious path. They do not want to take any chances. The feeling is that it is not yet time for the chicken feast," Gold Chick Hatcheries & Foods Ltd vice-president D V Harikrishna said. 

 

This has led to drop in the consumption by 40 per cent in the city. "About 2.5 lakh kg chicken is consumed in Hyderabad per day. This had come down to 1.5 lakh kg recently. Though the demand has picked up in the last few weeks, the crisis is not yet over," he said.

 

The resultant reduction in prices is proving to be nightmarish to hatcheries and farmers, National Egg Coordination Committee (NECC) chairperson Anuradha J Desai said.

 

"In North India, the farm gate broiler price has crashed to as low as Rs 10 as against the cost of production of Rs 30. The poultry sector has already suffered a loss of Rs 500 crore and is continuing to lose at least Rs 15 crore per day," she said.

 

The brunt of the crisis would be borne by small and marginal farmers as they constitute 90 per cent of the industry in India.

 

Most of the farmers have lost their entire capital investment, she added. While the crisis has been devastating, it has also brought home some truths, poultry consultant Malati Puranik said.