Poultry Farmers Set to Face Stiff Competition from U.P

INDIA – Poultry farmers in the state of Andhra Pradesh, particularly in Hyderabad region, are for an intense competition to retain their market share in the country in the next couple of years with their traditional consumer markets in North India trying to become production centres themselves.

The New Indian Express reports that Uttar Pradesh, which has been dependent on Hyderabad poultry zone for egg production, is all set to evolve as an egg production centre itself, with state government making efforts to become self-sufficient in poultry production, particularly eggs.

Hyderabad zone, one of the seven poultry zones in Andhra Pradesh comprising Ranga Reddy, Mahbubnagar, Medak, Kurnool and Hyderabad districts, is the highest egg producer among the poultry zones of the state. On an average, it exports 60 lakh eggs to eastern Uttar Pradesh, while the western parts of that state get eggs from Chandigarh. During the peak period the egg exports to eastern UP touches nearly 80 lakhs per day.

According to experts the average egg consumption in UP stands at 1.30 crore and the domestic egg production with the latest efforts of that state government stands at 20 lakh and is set to increase in the next couple of years if the new Uttar Pradesh Poultry Development Scheme succeeds as per the expectations.

Under the fast track poultry production in UP, faster clearances on land acquisition and power supplies to the new units are being offered. Even the banks were directed to lend more loans to the new poultry units. “UP government in order to boost poultry production is offering more incentives including a total waiver of interest on loans, which would attract more players to set up poultry units there,” AP Poultry Federation president D Sudhakar said.
The new incentives and efforts of UP in implementation of rural backyard poultry scheme sponsored by the Central government had substantially increased layer birds, which in turn would augment the egg production, posing a stiff competition for those exporting eggs to Uttar Pradesh.

“It might not affect the present quantum of export of eggs from Hyderabad region to Uttar Pradesh, but given the increasing consumption market for the egg and other poultry products, capturing the future market in that state could be a tough task,” said a senior officer at the National Egg Coordination Committee (NECC).

It is not just Uttar Pradesh, that is making efforts of self-sufficiency, but similar efforts are being made in other states. In long term, it would mean that poultry farmers in the state have to compete more for retaining their customers. Till few years ago, there was not much competition from the neighbouring Karnataka and in fact the eggs used to be exported to some regions of that state from Andhra Pradesh. But things have changed now there with regard to poultry sector.