Chicken prices have tumbled 25-30% across several states in the past two months as concerns over H5N1 bird flu dampened consumer demand. This unexpected drop comes despite the usual seasonal trend of poultry prices firming up ahead of summer.
The average ex-farm chicken price in South India has fallen to ₹55-60 per kg, down from ₹85-95 per kg in January. Retail prices have also declined from ₹160 per kg to about ₹120 per kg, according to industry data.
The slump in demand follows bird flu cases reported in nine states since January — including Jharkhand, Karnataka, Odisha, Andhra Pradesh, Telangana, Maharashtra, Punjab, Madhya Pradesh, and Bihar. Mass culling of poultry has taken place in some affected regions, further impacting market sentiment.
Traditionally, chicken demand spikes before summer but dips during the peak season when consumers prefer lighter foods. However, poultry prices usually remain stable due to heat-induced poultry mortality, which limits supply. This year, fears of bird flu have led to an unusual surplus in the market.
Poultry operators report that unsold birds have grown larger, exacerbating the supply glut.
“The average bird size is typically 2.5 kg, but due to weak demand, birds have grown to around 3 kg, creating a 40% surplus in the market,” said Vasantkumar Setty, founder president of the Maharashtra Poultry Breeders Welfare Association.
In recent days, chicken prices have begun to fall even in North India, further reflecting the supply-demand imbalance.
The impact on sales has been severe, with some regions reporting a 70% drop in chicken demand at its peak.
“Although bird flu doesn’t affect humans when chicken is cooked at temperatures above 70°C, fear-driven sentiment caused retail sales to plunge to about 30-35% of their usual levels,” said an executive from a leading poultry company.
However, sales have started to recover. In states like Andhra Pradesh and Telangana, retail demand has climbed back to about 85% of normal levels.
Despite the ongoing challenges, industry experts remain optimistic that consumer confidence will continue to improve, stabilizing the poultry market in the coming weeks.