New Delhi : Even as the present year commenced and was in its third month, it was expected that the domestic poultry industry would grow by 8-10 % in 2023-24. This was because it was driven by volumes and realizations following a steady demand and higher penetration of processed chickens as well as value-added products. It was also estimated that earnings would be volatile owing to fluctuations in raw material prices particularly maize and limited ability of players to fully pass on the cost increases.
However, ironically as the year comes to a close, it is now being seen that the chicken prices have crashed. This is due to surplus supply as the birds put on weight due to climate change and low consumption during the auspicious season. Farm gate prices have crashed from about Rs 110 / kg a few months ago to Rs 60 / kg. The price of dressed chicken is as low as Rs 130 / kg. Barely a week ago it ranged between Rs 250 and Rs 280. Though it is not uncommon for prices to fall during this time of the year, the drop in prices is much more.
What is the issue?
While trying to understand what factors led to the price crash, Odisha’s and northern Andhra Pradesh’s poultry farms dumped chickens where the month-long auspicious occasion of mahakartik is being celebrated. The festival is expected to run for a fortnight more and over the month while the festival is being organized, people turn completely vegetarian. This is the holy month when the Sabrimala pilgrimage season begins.
Now what is happening is that with both Odisha and Andhra Pradesh’s poultry farms reporting distress sales of chicken, the poultry farmers are now desperately dumping their goods in Bengal at an unexpected low price forcing the poultry farmers to make distress sales to match the price. This development came unexpectedly as during this season chicken consumption rises exponentially. According to farmers, they had started ramping up production since October as they expected rising business during winter. Most have lamented that they would be suffering huge losses after making good investment in the business.
Just a few months ago
It is noteworthy that only a few months ago chicken prices had shot up to an all-time high of Rs 275 / kg in May. What’s more, prices remained stagnant for two months. High mortality of chickens due to heatwave type conditions affected the supply and it resulted in the price hike. As temperatures fell from June onwards due to monsoonal showers, it favored poultry farming.
Silver lining
However, not all hope is lost. With festive season of Christmas and new year approaching soon, party season will be in full swing for 15-20 days. So resultantly, as the chicken prices are down, there will be a huge demand for the product. In New Delhi, the Gazipur Poultry Market in its individual capacity supplies 500,000 hens on a daily basis.
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