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India’s livestock industry is not happy with the commencement of imports of processed chicken legs from the US and other markets, where the birds, they allege, are fed on genetically modified (GM) corn and soyabean.
The industry says the production cost of meat from birds fed on GM grains would be lower compared with the Indian market, where such grains are not available, giving exporters the upper hand.
The Compound Livestock Feed Manufacturers Association (CLFMA) of India is lobbying with the Centre for a ban on such imports.
CLFMA Chairman B Soundararajan told BusinessLine that the industry fears that meat from the US and Brazil would be available at rates similar to those of Indian meat though their production cost would be much lower.
For every kg of chicken meat, about 1.6 kg of animal feed is required. Therefore, those who can source the feed at a lower price stand to gain.
Feed costs weigh
Soundararajan said the animal feed sector is primarily based on commodities such as corn and soyabean, whose prices have turned volatile in the global market. While they are subdued currently, the prices were high three years ago, because of which the industry suffered.
Domestic prices are 15-20 per cent higher than the international market because in some countries GM corn, which is cheaper, is said to be used. There is no GM corn feed in India.
The Indian poultry market is valued at a whopping ₹75,000 crore. In 2016, India had imported about 158 tonnes of processed chicken meat valued at $4 million. As recently as April, some sample consignments of chicken legs from the US had arrived after India lost a protracted dispute at the WTO. India had imposed a ban on US chicken legs citing the threat of avian influenza.
Unlike in India, there is no demand for chicken leg meat in the US market. Indian producers fear that such cheap imports, targeted at institutional domestic buyers, will open the floodgates.
“There is an uncertainty on this issue although the CLFMA has been talking about it for the last five years. This issue was discussed with Union Ministry of Agriculture and NITI Aayog but no answers are forthcoming,” said Soundararajan, who is also the Chairman of Suguna Holdings. Suguna is one of the largest poultry companies in the country.
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