May 19, 2009

Pakistan has allowed zero import duty for corn and vaccines to help lower poultry production costs, which will in turn reduce poultry prices.

 

Aside from corn, vaccines and feed items, other inputs used in poultry feed has also been zero-rated, according to sources in the ministry of livestock.

 

Sales Tax exemption had also been granted for uncooked poultry meat to encourage the establishment of value chain industry, the sources said.

 

To facilitate the value chain industry, the government has allowed imports of poultry meat processing equipment and poultry house machineries at zero percent custom duty.

 

This will help boost poultry shelf life, limiting middle-men exploitation of farmers and consumers, and assist in stabilising chicken prices. 

 

The government has also imposed a 25 percent custom duty on imports of poultry meat and poultry products, in order to protect the domestic poultry industry.

 

The government also implemented a PKR1.2 billion (US$15 million) bird flu project to handle the disease, and allocated PKR324 million (US$4 million) to compensate farmers whose birds were culled due to bird flu.

 

Increases in per capita income and urban population have boosted chicken meat demand and prices, sources said.

 

Rising input costs have also increased prices.