May 23, 2005

Optimism for Indian poultry after Pakistan lifts duties

As a mark of improving bilateral relations, Pakistan's Economic Coordination Committee recently waived off duties on poultry imports from India, where poultry is a flourishing industry.

Poultry traders in India's northern Punjab state, reeling under competition and low prices, have already begun exploring Pakistani markets. Egg production in Punjab is about 8.5 million per day and the total poultry population is around 30 million.

Traders say with Pakistan relaxing poultry imports, the industry would create more jobs in India's farming community but also indirectly in the sectors for feed, vaccines and equipment , among others.

Livestock fetches a more lucrative price in Pakistan. While the price of a dozen of eggs is 21 rupees in India, it is more than double at a whooping 55 rupees in Pakistan. Moreover, the consumption of eggs and non-vegetarian food is perennial in Pakistan while Hindus abstain from non-vegetarian food for holy periods round the year lasting a week to about a month.

Both sides are upbeat of the benefits that will accrue to each from any resumption in the poultry trade. Pakistani consumers will stand to benefit with the increased supply and lower market price of eggs. For Indian producers, production of eggs and livestock looks set to increase as sales revenue from exports to Pakistan go up.