June 24, 2013

As traders have stopped buying live chicken from poultry farms and wholesalers, almost all retail outlets of chicken meat in Pakistan wore a deserted look during the last two days.

The ugly situation emerged only when city administration forced retailers to sell live chicken to consumers at PKR170 (US$1.72) per kilogramme (kg) and chicken meat at PKR280/kg (US$2.83), but the retailers opposed the decision with the claims that the imposed rates are unacceptable to them as they can hardly afford sustaining financial losses for selling chicken at lower rates.

"Before observing indefinite strike, we were buying live chicken at PKR198 (US$2) from farm houses in Karachi and interior Sindh and selling the same at PKR210/kg (US$2.12), which also included our profit and transportation charges but the strong armed tactics employed by the city administration against retailers resulted in complete closure of this business across the city," claimed a leading retailer of chicken meat at Goal Market situated in Nazimabad area.

He blamed the city administration for persecuting helpless retailers instead of proceeding against the influential farm houses and wholesalers mainly responsible for charging higher rates for their products.

The problem would remain unresolved unless tangible measures are undertaken by the government against profiteers and farm house owners who wield considerable power among government functionaries.

Another chicken retailer at Empress Market replying to a query of the scribe, claimed that beef and mutton traders are doing roaring business since the last 48 hours since the chicken is not available in the city markets leaving no choice for consumers but to pay higher rates for the commodity. He apprehended that further delay in resolving the lingering issue of chicken meat selling at lower official rates may further push prevailing higher cost of beef and mutton beyond the financial cost of large segment of the population.

Pakistan Poultry Association Central Convener Maroof Siddqui when approached to seek his point of view over existing situation, said retailers for the last two days are not buying live chicken from farm houses owners and wholesalers as they can ill-afford to sell chicken at a rate, which may cause them substantial monetary losses.

The total cost of chicken production has spiralled out of the control of farm house owners as it has increasingly become difficult for them to continue selling their products at sustained losses.

If a pragmatic view was taken of the existing rates of beef and mutton, which currently stands at PKR350 (US$3.54) to PKR400 (US$4) and PKR550-600 (US$5.56-6.06) per kg, the existing chicken rates appear to be disproportional to them. He claimed that chicken meat is the only commodity in the market, which keeps changing its rates depending on demand and supply ratio while prices of rest of the commodities never show any decline.

He urged the government to resolve the issue of chicken meat rates, which could appease all stakeholders otherwise any forced measure to sell the commodity at less than the rate of production may spell negative consequences for the farm house owners and thousands of traders involved with this business.