The Hindu Business Line : Bird flu scare: NECC seeks relief measures

THE Chairperson of the National Egg Co-ordination Committee (NECC), Ms Anuradha Desai, has urged the Union Government to immediately formulate and implement a relief and rehabilitation programme for the poultry farmers who have incurred heavy loss on account of " unwarranted and undue" bird flu scare among the consumers of chicken and eggs in the country.

Ms Desai told Business Line that at least 30 per cent of the poultry farmers in the country had lost their capital investment and stand to lose their only means of livelihood.

The relief and rehabilitation programme should comprise rescheduling the outstanding bank loans of poultry farmers, reducing the rate of interest, extending fresh working capital facilities and sanction of a substantial grant for undertaking a campaign to educate consumers, Ms Desai said in a press release on Thursday.

She said the Government should declare at least a one-year moratorium on repayment of the outstanding bank loans by farmers. Similarly, the interest on bank loans should be reduced to 2 per cent lower than the prime-lending rate as contemplated in case of agricultural loans. At present, the banks were charging an interest rate of 13.5 per cent to 14 per cent on the loans extended to poultry farmers. This should be reduced to 8 to 9 per cent.

Stating that Indian poultry was a Rs 29,000- crore industry, Ms Desai said it should be revived in the larger interest of the nation. While extending fresh working capital facilities would enable the farmers to revive and re-start their operations, undertaking campaign to educate consumers would restore the demand for poultry products. At present, NECC was playing a major role in conducting such campaigns and monetary support was sought from the Government for that.

The press release stated that consumption of chicken in North India has dropped by 40 to 50 per cent and the farm gate price of broilers has crashed to as low as Rs 10 per kg of live weight, as against the cost of production of Rs 30. Even in South India, industry sources said, there was a 20 per cent decline in consumption and the prices have dropped much lower than the cost of production.

As a result, the poultry industry had so far incurred a loss of Rs 500 crore and was continuing to lose at least Rs 15 crore per day.