The rise in diesel prices has come as a rude shock to the poultry industry which is already reeling under heavy operational costs due to a recent rise in cost of feed. Eggs will now cost more.
The industry is heavily dependent on diesel for both transportation and power generation.
Given the fuel price hike, the production costs will increase by at least 13 percent, representatives of various hatcheries said. Though there is no immediate rise in the cost of poultry, the prices are bound to peak, they explained.
High production costs
“Input costs were already high and now that transportation and power generation will be dearer, there will be a substantial increase in the production costs,” K.G. Anand, general manager of Venkateshwara Hatcheries said.
NECC Hyderabad Zone Chairman, K.V.S. Subba Raju, on the other hand, said that they will be forced to increase prices or else, sustain heavy loses. “Power prices were increased earlier in the year, then came the 60 percent load shedding and now the diesel prices have increase. Poultry industry needs continuous power supply and due to this fuel bill will be enormous,” Mr. Raju explained.
At present, a dozen eggs cost an average of Rs. 48 while the wholesale price of a live bird is about Rs.75 per kg.
