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Prices of Poultry Products Likely to Rise Again

by 5m Editor
27 June 2012, at 7:35am

INDIA - The prices of poultry products are expected to rise further in the light of a steep increase in the cost of poultry feed ingredients, according to Andhra Pradesh Poultry Federation (APPF), an apex body of poultry farmers.

According to Business Standard, APPF president, D Sudhakar, said that the prices of maize and soya meal, the principal ingredients of poultry feed, have gone up by over 60 to 90 per cent in the last two years. While the price of maize increased from about Rs 800 to Rs 1,300 a quintal, the price of soya meal has increased from around Rs 1,800 to Rs 3,350 a quintal.

Not just the market price, even the minimum support price (MSP) of the two agricultural commodities have been enhanced by 35 per cent in the past two years. At present, the MSP of maize and soya per quintal stood at Rs 1,180 and Rs 2,200 respectively.

During the past one year, Mr Prabhakar told mediapersons that the cost of production of egg increased from Rs 2.75 to Rs 3.25 and that of broilers from about Rs 58 a kg (live bird) to Rs 85 a kg.

Consequently, the average price of an egg has increased from Rs 3 to Rs 3.50 or Rs 4 now and that of dressed chicken from about Rs 140 to about Rs 180 kg in the past one year. Venkateshwara Hatcheries general manager, K G Anand, said that these were expected to rise further by 10-20 per cent.

However, Mr Prabhakar said that the rise in prices were not commensurate with the increase in cost of production leading to a crisis in the poultry industry. Hence, the poultry sector was seeking exemption of poultry products from market cess.

The state government issued an order in 1980s imposing market cess on poultry products but it had not implemented it so far following periodicals representations from APPF. As the order is likely to come into effect from August, this year, the federation once again is lobbying for "permanent abolition of market cess".

Recently, following a representation from APPF, the state government had withdrawn tax on conversion of agricultural land for poultry operations.

As per APPF estimates, the state produces 60 million eggs a month accounting for one third of the total egg production in the country. It also produces 30 million broiler chicken every month and stands tenth in the country in broiler production providing employment to 2 million people, mostly in rural areas. On the whole, poultry industry contributes Rs 15,000 a year to the state’s gross domestic product.