October 9, 2008

A decline in demand during the Navratri festival and short supplies have kicked up India's chicken wholesale prices by about 13 percent in two weeks' time.

Wholesale prices of chicken have increased to Rs 53 per kg from Rs 47 in mid-September. Retail prices in New Delhi have also increased to Rs 110 per kg from the range of Rs 90-100 last month.

Haji Babu Khan Salmani, chairman of the Fish, Poultry and Egg Marketing Board, attributed the price increases to short supply from neighbouring states.

Salmani said chickens and eggs are usually supplied to the Gazipur mandi in Delhi from Haryana, Punjab, Rajasthan, and the National Capital Region. But a lack of supply has led to price increases despite reduced demand, Salmani said.

Traders are waiting for the festive period to be over to increase supplies at a time when demand is expected to rebound, but this check in supply is also pushing up prices, according to an industry expert.

Mandi sources said about 125 vans carrying broilers used to reach mandis on a normal day but during this year's Navratri festival, the number of vans has dropped to 70-80.