October 12, 2010

Nepal's chicken prices decline significantly on start of festival

With the beginning of the Dashain festival, prices of chicken have decreased considerably in the Nepalese Kathmandu Valley.

The decrement in the consumption of chicken in the valley has been ascribed to the downward spiral in the prices of chicken.

A sizeable chunk of consumers are inclined towards mutton and meat of other animals during the festival and the number of consumers in the valley has also decreased due to the festival, according to traders.

The higher production of chicken during this time is said to be another reason behind the decline in chicken price by around 30% in the recent days. The price of chicken has decreased to Rs200 (US$2.85) from Rs270 (US$3.85) per kg.

The downward spiral in the price of chicken is expected to continue till the Vijaya Dashami. The price of chicken is likely to go down by around 40% during the festival.

An estimated 200,000kg of chicken is sold in the valley daily. Production of chicken has been increasing in the country because more farmers from different districts have been motivated towards poultry farming.