The ultimatum given by Finance Minister T.M. Thomas Isaac on pricing of chicken and the indefinite strike called by poultry farmers and traders in response to it have pushed the poultry industry in the State to a crisis.
The Poultry Farmers and Traders Samithi said chicken cannot be sold at the rate of ₹87 as directed by the Minister. Livelihood of more than eight-lakh people, who depended on the industry, would be hit by the directive, the samithi said.
“We don’t understand the logic behind Finance Minister’s pricing of chicken. The cost of production of one kilogram of chicken at the farm itself will come to more than ₹85. This is excluding expenses such as transportation and waste management,” Binny Immatty, State president, Poultry Farmers and Traders Samithi, said.
‘‘We suspect a hidden agenda to promote poultry business in Tamil Nadu as the crisis here will help them. The poultry industry, which is suffering heavy loss due to price hike, diseases and climate change, will collapse with the decision,’’ he said. The farmers suggested that the rate should be fixed between ₹100-110 to run the business profitably, he said.
More than 10,000 poultry shops will go on an indefinite strike from Monday.
In the VAT regime, chicken had a bench mark price of ₹100 with a presumptive tax of 14.5 per cent. Since the commodity has now been exempted from tax, the government wants the benefit to go to the farmers so that they can sell at ₹87.
“But the price of chicken prior to July 1 was above ₹115 across south India. Even now, Karnataka sells at Rs.160 a kg and in Tamil Nadu it is ₹150 a kg.
“On an average, the State needs one-crore kg of chicken a week,” according to T.P. Sethumadhavan, Director of Entrepreneurship, Kerala Veterinary and Animal Sciences University.
The State cannot determine the pricing of chicken, as domestic production catered only to 30 per cent of the need. Therefore, it heavily depended on Tamil Nadu for its chicken needs, Mr. Immatty said.
The samithi said that with all facilities, farm production price of the Kerala State Poultry Development Corporation stood at ₹98 kg and it sold chicken at ₹168 a kg. The Meat Products of India sold chicken at ₹206 a kg. “Then how can we alone sell chicken at ₹87,” the samithi asked.
The samithi would approach Chief Minister Pinarayi Vijayan for a solution.
Reduced production
Meanwhile in Alappuzha, All Kerala Poultry Federation president Thajudeen said in a statement that the increase in the prices of chicken was the result of reduced production. It was a fallout of the water scarcity experienced in the summer season across the country and not merely in Kerala and Tamil Nadu.
Once the production increased, the prices would drop below ₹100. Under the present circumstances, it was not possible to sell chicken at ₹87.
