Poultry sector demands subsidy of Rs20 per kg

PPA says it fears 50% of farms may close due to high costs

LAHORE: The PP’s high costs have forced the industry to seek help.

As a result, Pakistan Poultry Association [PPA] Chairman Rai Mansab Ali has asked the government to provide a relief package.

At a press conference, Ali said that the cost of the poultry sector is already high due to constant load shedding.

According to Ali, the broiler average rate remained at Rs117 per kg during the last one year while cost was in the range of Rs130-135, causing a loss of more than Rs20 per kg to the poultry farmers. He demanded that the government provide the sector with Rs20 per kg subsidy to reduce cost of production.

He said currently costs are higher due to inflation over the years. The average price of a day old chick during July 2016 was Rs5.50 only. “Presently cost of production for day old chicks is Rs35 if selling price is Rs24 per chick; it comes to a loss of Rs13.75 billion in a day-old chick.”

The total loss mounts to around Rs43 billion on sales of 1.25kg birds [average weight of one bird 1.75kg]. This loss may go higher because the cost is increasing while sale price is not increasing, he observed. If the present situation prevails, up to 50% poultry farmers will be closed, causing unemployment for hundreds of thousands of people, Ali added.

To further facilitate the sector, the scheduled banks should be asked to provide interest free loans to poultry farms. He said repayments of farmers who have already taken loans from banks to expand their business should be re-scheduled for at least one year, he said.

He further said that 20% duty draw back [export subsidy] and 25% freight subsidy to the exporters of poultry products should be provided to compete with the poultry exporters of other countries.

Published in The Express Tribune, August 3^rd, 2016.

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