The prices of chicken, in many parts of India have started soaring and are expected to register an increase by 25-30 per cent and in consumption by 35-40 per cent in the wake of beef ban, an analysis undertaken by industry chamber Assocham has revealed.
“Poultry wholesale price index has also risen over 22 per cent while that of beef and buffalo meat has declined about three per cent between May 2014 and March 2017,” noted the analysis carried out by Assocham Economic Research Bureau (AERB).
Besides production of poultry meat, mainly chicken has been steadily growing at a compounded annual growth rate (CAGR) of about 10-12 per cent, while its consumption has been clocking a CAGR of 15-18 per cent during the course of past few years.
The Assocham analysis also noted that between June 2013 and May 2014, there was an increase in wholesale price levels of over 10 per cent in beef and buffalo meat while that of poultry chicken declined by about nine per cent.
“Beef ban and the related controversies have surely come as a blessing in disguise for poultry firms in states like Andhra Pradesh, Haryana, Karnataka, Kerala, Maharashtra, Punjab, Tamil Nadu, Telangana, Uttar Pradesh and other key regions,” said an Assocham spokesman while releasing the findings of the chamber’s analysis.
Apart from a sudden ban, “rising per capita incomes, growth in quick service restaurants are other key reasons for growing demand and consumption of meat in India,” said Assocham.
“Government needs to encourage poultry farmers to give them level playing field against developed countries in terms of export and import market,” the chamber suggested.
“India also provides a huge opportunity for foreign direct investment (FDI) in poultry especially in areas like breeding, medication, feedstock, vertical integration and processing, as such these areas should also be exploited,” it further recommended.
As part of further analysis, Assocham conducted a quick survey of about 100 poultry shops in the aforesaid states whereby majority of the respondents said that demand is picking up despite the onset of summer and currently there is about to 15-20 per cent rise in prices which might go up to 25 per cent and beyond more so owing to on-going Ramzan.
Most of the respondents said that though both poultry demand and prices usually drop during summer but it is not so this year due to ban on beef.