Bird flu impacts poultry sector, sales down

BusinessToday.In

Updated Jan 12, 2021, 12:38 PM IST

Bird flu impacts poultry sector, sales down

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The bird flu outbreak has now reached 10 states after Delhi, Maharashtra and Uttarakhand also confirmed positive cases. The government has asked local authorities to boost surveillance around water bodies, poultry farms, and live animal markets. People have become apprehensive about buying/ eating meat, causing massive upheaval in the poultry business.

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Struggles of the poultry sector

The bird flu outbreak has come as a further blow to the nation's poultry industry, which was already trying to recover from the staggering losses thanks to speculation fanned by social media that chickens could spread the coronavirus. The poultry sector directly or indirectly employs and supports more than 10 lakh farmers and contributes Rs 1.2 lakh crore to country's GDP directly.

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The last Bird Flu outbreak

The poultry industry had faced a similar crisis in 2006 when there was a massive bird flu outbreak in India. The government had then provided relief measures to the poultry sector by announcing interest subventions and increasing credit duration to the poultry industry for a limited time period.

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Demand for chicken

The year 2021 was not great for the poultry sector from the start. The fear of bird flu has now impacted demand for chickens and poultry products. The demand has decreased by more than 70 per cent, poultry traders said. Prices have fallen by 50 per cent and egg prices have also come down by nearly 15 to 20 per cent, said Ramesh Khatri, President, Poultry Federation of India.

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North India is most affected

The poultry industry in North India has been badly affected by a ban on transportation of hens from one state to another. A delegation from the industry is scheduled to meet the central government. Further development is awaited.

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Ban on poultry items

The industry has started to feel the blow already. Nepal has stopped importing all kinds of poultry items from India after news of bird flu outbreak was reported. Shree Ram Ghimire, spokesperson at the Ministry of Agriculture, has confirmed that only certified poultry products can be imported inside Nepal.

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Signs of concern for poultry business

Agricultural economist and Poultry Federation of India advisor, Vijay Sardana, said the country's poultry industry is worth nearly Rs 1.25 lakh crore, which has drastically come down to half during the pandemic . The business of the poultry industry which was nearly Rs 1.25 lakh crore before COVID-19 pandemic unfolded has now been reduced to nearly Rs 60,000 to 70,000 crore.

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Rumour-mongering is another threat

Poultry Federation of India President, Ramesh Khatri said that he would demand from the central government to save the poultry industry from rumour-mongering of bird flu. Poultry farm operator, Rakesh Manhas, also said he would urge the Central government that the rumours spread about bird flu cause huge losses to the industry, so measures should be taken to prevent such a situation.

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A fall in stocks of poultry producers

Stocks of poultry companies like Venky's (India) and Simran Farms fell up to 5 per cent in early trade on Thursday, last week, after reports of bird flu emerged from four states-Kerala, Rajasthan, Himachal Pradesh, and Madhya Pradesh. Shares of Simran Farms opened 4.95% lower at Rs 55.7 and were stuck in the lower circuit of 5% in the afternoon session. The share saw only sellers and no buyers. Market cap of the firm fell to Rs 21 crore on BSE as on Thursday.

Bird flu impacts poultry sector, sales down

Bird flu impacts poultry sector, sales down

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