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Ch. Prashanth Reddy

Even the production cost of an egg has increased by 10 paise while its price has declined from Rs 1.19 in 2000 to Rs 1.12 in 2001 and to Rs 1.08 in 2002. At present, an egg costs 98 paise.

HYDERABAD, March 26

NEARLY 30 per cent of the estimated 5,000 producers of broiler chicken in Andhra Pradesh have gone out of business in the past year on account of increasing cost of production and decline in the price of the output, according to Mr D. Sudhakar, General Secretary of the Andhra Pradesh Poultry Federation (APPF).

Mr Sudhakar told Business Line that while the cost of production of a broiler chicken weighing one kg was Rs 28, its average market rate last year was Rs 25.50. In the first three months of this year, the average price stood at Rs 23.50 per kg of live bird though the cost of production further increased with the rise in the price of maize, the main ingredient of the poultry feed, from about Rs 480 per quintal last year to Rs 580 per quintal now.

Even the production cost of an egg has increased by 10 paise while its price has declined from Rs 1.19 in 2000 to Rs 1.12 in 2001 and to Rs 1.08 in 2002. At present, an egg costs 98 paise. Much to the chagrin of the poultry industry, the maize acreage and productivity in the State remained stagnant for many years.

Andhra Pradesh accounts for 35 per cent of the egg production in the country and also ranks first in India in the production of broilers. It produces 3.5 crore eggs per day and 18 crore broilers per year. Everyday, over 150 truck loads of eggs move from the State to Kolkata, Northeast, Maharashtra, Uttar Pradesh and Tamil Nadu.

Ironically, despite facing a crisis every three to four years, poultry is the only activity in the agricultural sector in the country that is steadily growing in the last three decades. In fact, Mckinsey report has projected that Indian poultry sector will grow over 20 per cent a year but stated that the future growth is linked to making feed available at the right price.

In Andhra Pradesh also, the industry has achieved multiple growth. However, according to the APPF President, Mr M. P. Seshaiah, the industry still requires help from the Government.

Poultry contributes Rs 16,000 crore to the gross domestic product of the country and provides employment to 16 lakh people across the nation in the rural areas but the policy makers have not yet realised the true potential of this sector, he lamented.

APPF had organised a meeting here on Tuesday to appraise the policy makers about the problems faced by the industry.

Stating that industry was reeling under severe crisis due to high feed cost, it urged the Union Government to allot 3 lakh tonnes of wheat from the FCI to the poultry sector.

The federation had also sought exemption of VAT on poultry products, rail freight subsidy for transport of feed ingredients and waiver of 15 per cent import duty on maize during the current year.

APPF also sought introduction of two eggs per week in the menu of the State Government's mid-day meal scheme. It urged the financial institutions to enhance working capital, waive penal interest rates in drought-affected areas and consider birds as stock for issuing loans.

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