August 2, 2010

In three days, chicken meat prices have risen by PKR30 (US$0.35) per kilogramme in Pakistan's provincial capital due to a supply shortage brought about by widespread rains and traffic disturbances.

Poultry Market Committee said that farm gate rate of chicken per kilogramme would be PKR116 (US$1.35), supply rate PKR123 (US$1.43), and retail rate PKR130 (US$1.52) and chicken meat rate PKR195 (US$2.27). However, chicken meat was sold between PKR180 (US$2.10) and PKR190 (US$2.22) on Thursday (July 29).

Farmer Chairman Pakistan Poultry Association (PPA) Abdul Basit clarified that PPA has not raised rates of poultry products. The recent price spiral is due to the widespread rains that had hampered smooth supply of poultry from farms to markets.

He hoped that chicken prices will come down after the end of current spell of monsoon rains in the province. He, however, stressed that the government must improve the market mechanism so that producers/farmers and consumers were not fleeced by the middlemen and market manipulators Basit confirmed that PPA has received a show cause notice from the Competition Commission of Pakistan (CCP) has issued a show cause notice for alleged for being engaged in practices prohibited under the Competition Ordinance (2010).

He said that PPA will submit its detailed reply to CCP on August 3 to satisfy if the prices of poultry products are market driven on demand and supply basis. "PPA could never manipulate the chicken meat prices as poultry is a perishable commodity and could not be hoarded or stored," he added.