Farm gate prices of live-weight broiler birds have fallen sharply across the country to a range of Rs 74 – Rs 85/kg from Rs 115 – Rs20/kg prevailed three months ago because of higher production compared to a sluggish demand.
Industry sources said that in anticipation of higher demand the firms pushed up production, the demand has not been robust as predicted thus bringing down the prices.
“High poultry feed prices, which constitute 65-70% of meat production, push up cost, while the demand has slackened in the last few weeks,” Ricky Thapar, treasurer, poultry federation of India, told FE.
Thapar said that while the demand from poultry meat products is expected to rise in coming weeks, the surplus production is likely to keep the prices at the current level.
The retail prices of chicken have seen a decline to around Rs 240/kg in Delhi region from Rs 260/kg prevailed three months back.
Current poultry feed which mostly consists of maize or corn and soymeal is ruling around Rs 37,000/tonne which is at the same level a couple of months back.
“Excess production is likely to keep prices at the current level despite rise in the projected demand,” a poultry meat retailer said.
Retail inflation in ‘meat and fish’ category’ rose by only 2.15% last month on year. The prices of chicken declined by 0.84% last month on year from 2.66% in October.
The poultry sector in India is valued at more than $ 28 billion in 2021-22.
The sector contributes 16% to the value of output for the livestock sector and 5% to the overall value of output of agriculture and allied sectors.
According to a CII report, the growth in the poultry sector in the country has been attributed to the commercial poultry industry which accounts for 85% of production while the rest of 15% of the output comes from the traditional backyard poultry.