October 31, 2019

India's poultry sector fear cheaper imports from US bilateral treaty

Part of the proposed treaty suggests cutting import duty on poultry from the US, from 100% currently to only 30%, reported Business Standard India.

India's poultry sector believes that cheaper poultry imports from the US will undercut local prices, which may lead to the closure of domestic poultry farms and processing facilities in the country. An estimated four million people in the industry will be affected.

The Union Ministry of Commerce held discussions with secretaries to the Departments of Commerce, Animal Husbandry and Agriculture with regard to finalising the US-India import duty.

Industry sources said the reduced import duty was added to the bilateral treaty during India Prime Minister Narendra Modi's visit to the US, at the request of US President Donald Trump.

The treaty would largely enable the import of chicken legs from US to India, a body of poultry not consumed in the US that is currently exported to third world countries, China and the European Union.

Raghav Rao, managing director of Kohinoor Hatcheries, Hyderabad said the US is scouting for a marketplace to export its chicken legs at low prices, with India at the top of the list. He added that the poultry industry had not received any government assistance and hopes the government would not obstruct in India's burgeoning poultry industry through the bilateral treaty.

India is the second largest poultry producer in the world, with four billion units of broilers (1.8 to 2kg each) and 88 billion eggs produced. About four million people work in India's poultry industry, with two million farmers working in corn and soybean farms. 

-   Business Standard India