India to beef up defence against US chicken legs

India is preparing a second line of defence to protect its domestic poultry industry against competition from cheap chicken leg imports from the US.

With the World Trade Organisation recently ruling against India’s ban on chicken import from the US on the grounds that it would lead to spread of bird flu, the Commerce Ministry has asked poultry breeders to work out fresh risk assessments that would better withstand scientific scrutiny. (Corporate such as Venky’s and Suguna are likely to be affected by the ruling.)

“We are going to challenge the WTO ruling soon, but we have to be ready for a possible negative outcome. That is why we have asked the poultry industry to get other possible health risks assessed,” a Commerce Ministry official said.

India’s over four lakh poultry farmers, who produce an estimated 3.5 million tonnes chicken annually, could take a severe beating if cheap chicken legs from the US flood the domestic market. India’s poultry industry, worth an estimated ₹50,000 crore, is the fourth largest in the world after the US, China and Brazil.

As US chicken legs are priced much lower than ones from India (Americans, unlike Indians, don’t savour legs), domestic breeders are apprehensive that they may lose up to 40 per cent of their market.

Many countries including several in the EU and Australia do not allow import of chicken from the US on various health grounds that pass the WTO scrutiny.

India’s concern that low pathogenic strains of bird flu (that is occasionally found in chicken from certain parts of the US) posed health risks was dismissed by the WTO as being scientifically invalid. New Delhi has time till January 26 to file an appeal against the ruling. The Commerce Ministry feels that it stands a better chance at retaining the import ban if it can issue fresh orders based on a more valid health concern.

“Risk assessment could be done on factors such as US poultry being fed genetically modified food or the fact that frozen chicken is kept in that state for long periods,” the official said. However, New Delhi has to steer clear of risks related to factors that may not be under control in the domestic market.

For instance, the EU decision to ban US poultry on grounds that chlorinated water used by poultry breeders in the US posed health risks can not be cited by India where water is chlorinated as well.

“In our recent meeting with poultry breeders, we have asked them to carry out risk assessments from reputable institutes with international experts. The restrictions that we impose have to be defensible,” the official said.

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