September 30, 2014

India eyes increasing exports of processed chicken

India's poultry producers, who are concerned about the possibility of the government allowing duty-free imports of chicken legs from the United States, are considering increasing exports of processed chicken.

A fall in feed prices has made Indian chicken competitive in the global market, which has prompted producers to explore the opportunity. For a start, the sector is planning to increase its presence in the Middle East, which mostly imports processed chicken from Thailand, Vietnam and Brazil.

The poultry sector is keeping their fingers crossed during Prime Minister Narendra Modi's visit to the United States, where talks are likely to focus on strengthening bilateral trade ties between the two countries.

The external affairs ministry had proposed to allow duty-free imports of US chicken leg in return for US access to Indian basmati rice and fruits.

Local poultry farmers said such a move would lead to dumping of an item that Americans usually discard. Americans prefer chicken breast meat, which is sold at a premium, and chicken legs are sold at throwaway prices.

"We had requested the agriculture ministry not to allow duty-free import of chicken legs from the US. The minister had assured us that he would look into it," said Amit Saraogi, chairman, Compound Livestock Feed Manufacturer's Association (India).