November 3, 2014

India may challenge WTO ruling, fears dumping of US chicken legs

India plans to challenge a recent World Trade Organisation (WTO) ruling that asks the government to remove curbs on poultry imports from the US.

A person with "knowledge of the government's plans" has been quoted by news reports as saying that India could possibly appeal the WTO order.

Industry leaders themselves said India "has a lot of reasons" to challenge the WTO ruling which, they said, could lead to dumping of US frozen chicken legs.

The local poultry industry fears loss of business if the government allows US imports to enter the Indian market. It raised the possibility of the US dumping frozen chicken legs on the Indian market. Chicken legs are usually considered discards in the US.

As the fourth-largest producer of chicken meat in the world after the US, China and Brazil, India remains directly inaccessible to foreign suppliers, although local companies have partnered with such US firms like Tyson Foods, Cobb and Aviagen Group.

Global poultry giants including Pilgrim's of the US, Brazil's Perdigao and Charoen Pokphand Foods of Thailand are said to be keen on entering the Indian market.