After plummeting to a record low of ₹25 per kg in March, broiler chicken prices in Kerala have started a northward movement beginning May.

The farm gate price of live birds is now hovering at ₹125-130 per kg and traders attribute the surge to reduced arrival of birds from neighbouring Tamil Nadu.

However, farmers could not derive the benefit of higher prices in the wake of shortage of birds in the market, said Binny Emmaty, President, Poultry Farmers and Traders Samithi. He told BusinessLine rising Covid cases in Tamil Nadu, Karnataka and Andhra Pradesh have hit the transportation of live birds to Kerala. Earlier, around 5,000 loads of broiler chicken, which is equivalent to 4,500 kg, would move to Kerala on a daily basis; this figure has now come down to 600-700 loads.

Covid rumours

Prices nosedived in Kerala in March following the dumping of birds from neighbouring States in the wake of alleged fake news relating chicken consumption to Covid infection, said Emmaty. Besides, the occurrence of avian influenza in the northern part of the State impacted business, forcing farmers to resort to distress sales, further leading to the shortage, he added.

Kerala’s demand for broiler chicken is estimated at 1 crore kg per week, of which 60 per cent is met from within the State and the remaining from neighbouring States. However, local production has come down by 50 per cent on account of Covid. Due to the low demand, the majority of small farmers opted out of the sector, said Emmaty.

Now, many of these farmers are interested in reviving their business, but are unable to do so in the absence of adequate financial support, he added, and requested the government to make arrangements with banks to get at least 25 per cent of the required financing from their existing collateral security.

Reduced supply

TP Sethumadhavan, former director, Kerala Veterinary and Animal Sciences University (KVASU), said the inflow of spent hens and broiler chicken from nearby States was totally stopped amid the lockdown. The increased demand during the festival season (Easter and Vishu) also paved the way for a reduction in supply, which in turn created a supply-demand mismatch, facilitating a quantum jump in prices. The current price increase will continue for a couple of months, he said.

Besides, the scarcity of raw materials for poultry feed affected feed supply from the nearby States. Integrators could not regularly supply feed to their beneficiaries. All these factors compelled poultry farmers and entrepreneurs to curtail rearing. The continuous lockdown since March 24 has affected the supply of fish and those consuming fish started purchasing chicken, he added.

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