Cheaper chicken legs from USA….

The proposal of the Union Finance Ministry to raise duty barriers on a score of farm products to the maximum permitted levels has provided a fresh lease of life to the broiler breeding industry of North India, which has been in doldrums for the past sometime now.

In the past four to six weeks, nearly 20 to 30 per cent of the broiler farms and broiler Hatcheries of Punjab, Haryana, Chandigarh, Jammu and Kashmir, Delhi, Rajasthan and North Uttar Pradesh have either closed down or reduced their production level to the bare minimum in anticipation of arrival of cheaper chicken legs, popularly known as “drum sticks” from the USA and other countries.

Though the government had hiked import duty on chicken legs from 35 per cent to 100 per cent, still the rate at which the USA was prepared to export drum sticks to India were much cheaper than the actual cost of production in India.

In case of India’s agricultural products, the bound rates are as high as 150 to 300 per cent. Currently, the rates applicable on various farm products, are low and the government can put the ante as a preventive measure.

In case of broilers and chicken legs, the bound rate was 300 per cent.

“What we learn or gather from newspaper reports is that the United States wanted to export drum sticks to India at Rs 15 a kg. The US wants to clear the backlog of its stocks of drum sticks which have been reportedly piling up for almost two years. Against the present US rate of Rs 18 a kg for drum sicks, the wholesale rate of broiler chicken in India varies between Rs 50 and Rs 52 a kg,” says Mr Surjit Singh, President, North Zone Broiler Breeders Association, maintaining that after imposition of 300 per cent import duty, the US drum sticks would still be very competitive.

“But this gives us a hope of survival and staying in the market,” says Mr Singh claiming that at present, the daily production of broilers in North India alone was to the tune of three lakh kg.

“There are 180 to 200 broiler breeders in North India and nearly 8,000 to 10,000 broiler farms in the region. But after the reports of imports of drum sticks from the United States started pouring in, most of the broiler farms decided to close down. Even 25 to 30 per cent broiler hatcheries have stopped production and have even started selling the parental stock.

The selling price of a broiler chick has slumped from Rs 13 to Rs 7 a piece,” says Mr Singh.

At present, the broiler farms supply chicken at a rate of Rs 24 to Rs 26 a kg. In the bulk market in Delhi, which is the only recognised bulk market in North India, the lumpsum rate was between Rs 26 and Rs 30 a kg for broilers.

In the local wholesale market, the rate quoted was Rs 50 to Rs 52 a kg while in the retail market, it varied greatly between Rs 70 and Rs 100 a kg.

“Unfortunately, the consumer does not know that it was the retailer which was making a quick buck as the demand for broiler has been constantly on the rise but the broiler farmer was just sustaining himself to stay in the business. But once the American supplies start hitting the local market without imposition of the anti-dumping or bound duty, the local industry would be completely wiped out.

“The present is very ticklish situation. With both hatcheries and farms deciding against new chicks, the supply would be affected in coming months and may promise a good market to the importers,” cautions Mr Surjit Singh advising broiler breeders and farmers to continue their production.

He said that while on an average an Indian drum stick was 70 to 90 gram in weight, an American drum stick weighed between 160 and 180 gm and lacked the flavour and aroma of Indian broilers.