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Prices Fall as Demand Drops

by 5m Editor
20 August 2010, at 9:47a.m.

INDIA - Poultry product prices have taken their usual seasonal downturn during the season of abstinence.

Seasonal uncertainties have forced the poultry producers in Tamil Nadu to slash the rates, reports Business Line. Prices of poultry products ruled almost flat in Namakkal – the country's poultry hub – owing to decline in consumption. At the heart of seasonal downturn is the festival season.

The industry normally experiences a temporary lull from August to October, which is considered a period of abstinence.

"Every year, the festival season brings jitters to us. Although the demand slumps, there is no slow-down in production, especially layer, and we are saddled with huge stocks," a poultry farmer told Business Line.

Namakkal forms the centre of poultry trade in the State and caters to markets such as the neighbouring Kerala and as distant as West Bengal. Demand falls at least by 15 per cent with the beginning of the Shravan month in July, which is closely followed by Janmashtami, Ganesh Chaturthi and Navaratri. Only after Diwali does demand pick up.

The Namakkal-based National Egg Coordination Committee (NECC) fixed egg prices at 2.30 rupees (INR) each yesterday (19 August), down 10 paise from last week's level. It has also pruned the prices for layer birds at INR35 per kilo from last week's INR37. However, the Palladam-based Broiler Coordination Committee has increased the prices of live chicken to INR56 on 19 August from last week's INR47 due to pick-up in demand from Kerala.

R. Nallathambi, President of the Tamil Nadu Poultry Farmers Association, told the news provider that the Gulf countries are still wary of importing eggs from India although the Union Government has declared the country avian flu-free.

He added: "Only this week, we have received orders from the West Asian market and we expect the demand to go up soon as the summer season is drawing to a close there."