August 23, 2010

Indian poultry prices take downturn

Prices of poultry products ruled almost flat in India's Namakkal, the country's poultry hub, due to a consumption decline.

Seasonal uncertainties have forced the poultry producers in Tamil Nadu to slash the rates. In the midst of this seasonal downturn is the festival season.

The industry normally experiences a temporary lull during August-October, which is considered a period of abstinence. "Every year, the festival season brings jitters to us. Although the demand slumps, there is no slowdown in production, especially layer, and we are saddled with huge stocks," a poultry farmer said.

Namakkal forms the centre of poultry trade in the State and caters to markets such as the neighbouring Kerala and as distant as West Bengal. Demand falls at least by 15% with the beginning of the Shravan month in July, which is closely followed by Janmashtami, Ganesh Chaturthi and Navaratri. Only after Diwali does the offtake pick up.

The Namakkal-based National Egg Coordination Committee (NECC) fixed egg prices at Rs 2.30 (US$0.05) a piece on Thursday (Aug 12), down 10 paise from last week's level. It has also pruned the rates for layer birds at Rs 35/kg (US$0.75) from last week's Rs 37 (US$0.79). However, the Palladam-based Broiler Coordination Committee has increased the prices of live chicken to Rs 56/kg (US$1.20) on the same day from last week's Rs 47 (US$1.01)-due to pick-up in demand from Kerala.

Mr R. Nallathambi, President, Tamil Nadu Poultry Farmers Association, said that the Gulf countries are still wary of importing eggs from India although the Union Government has declared the country avian flu-free. "Only this week we have received orders from the West Asian market and we expect the demand to go up soon as the summer season is drawing to a close there," the president added.