Taxes on import of poultry feed ingredients: PPA warns of shortage of chicken, eggs

LAHORE: The Pakistan Poultry Association (PPA) (Northern Region) on Monday warned of severe shortage of chicken meat and eggs in the near future if duties and taxes levied on import of poultry feed ingredients are not withdrawn at the earliest.

"This shortage will push the prices of this source of protein to the highest ever level," said Raja Attique-ur-Rehman Abbasi, Vice Chairman Pakistan Poultry Association (Northern Region), while addressing a presser at the Lahore Press Club (LPC).

He said the poultry sector is one of the most organized branches of the agro-based sector of Pakistan. The prices of chicken products are determined purely on the market supply-demand basis. This is how at times the prices of chicken products are below the input costs incurred by the farmers and they are compelled to sell their commodity at a price lower than their cost of production and bear the losses. This phenomenon of low and high prices helps farmers to achieve an average yearly price, which may be slightly better than his input cost, where he is able to make some profit provided his efficiency stays good. The poultry sector gives employment to over 1.5 million people directly and indirectly. Pakistan is producing 1322 million kilograms of chicken meat and 17500 million table eggs annually.

He further said the cost of production of chicken meat is Rs 180 and its market price is around Rs 265 per kilograms. He claimed that 30-35 percent of the farms have already been closed due to the loss being faced by poultry farmers during previous months.

The sector is requesting the government for the last six months to allow the import of corn and other ingredients of poultry feed free of duty and taxes but no permission is granted so far. Even the prices of vegetables and pulses including ginger, garlic tomato have increased many times during the last months and pulses are being sold for more than Rs 200 - Rs 300 per kg. Now the question arises that why only chicken meat rates are being targeted by the government. Poultry feed constitutes 75 percent of the total cost of poultry farmers. During the last year, the demand of chicken meat has been reduced to 30-35 percent due to which poultry prices are depressed and the poultry industry is facing a loss of millions of rupees.

Copyright Business Recorder, 2021