First COVID-19 crisis, now bird flu clatters poultry industry

Jan 13, 2021

The impact of the covid 19 wasn’t yet over and now the bird flu outbreak comes as a fresh blow for the poultry industry.

During the pandemic the losses were pegged at $1 billion and with customers drying up, the chain of production of poultry products is already under threat, according to several media reports.

The Indian poultry industry was projected to reach Rs 4,340 billion by 2024, growing at a compounded annual growth rate of 16.2 percent during 2019-2024, according to some estimates. However, if reduced demand due to avian influenza persists, this target may become increasingly difficult to achieve.

The slump in the poultry industry has a far-reaching impact, as Indians consume 30 crore poultry birds and 900 crore eggs per month on an average. People in a range of occupations, from shop owners to retail suppliers, stand to be affected.

So far, the avian influenza has been reported in 10 states. Delhi, Uttarakhand and Maharashtra on Monday confirmed bird flu cases, adding to the list of seven states — Kerala, Rajasthan, Madhya Pradesh, Himachal Pradesh, Haryana, Gujarat and Uttar Pradesh — which had already reported avian deaths due to the disease.

While states announced several measures including mass culling of poultry, ban on live bird markets and restriction on chicken and related food materials, the Centre asked them not to close mandis or obstruct the sales of poultry products. The Delhi government has imposed a ban on the sale of processed and packaged chicken brought from outside the city.

Animal Husbandry and Dairying Minister Giriraj Singh said there have been no scientific reports on the transmission of bird flu to humans and consumers should not be scared. However, the effects have become visible on the poultry sector in several states.

Farmgate prices of broiler chicken have crashed from around Rs. 82 to Rs. 58 per kg in Maharashtra, Rs. 94 to Rs. 65 in Gujarat, and Rs. 80 to Rs. 70 in Tamil Nadu. During the same period, egg prices have fallen from Rs. 5.10 to Rs. 4.20 per piece in Namakkal (Tamil Nadu), Rs. 5.35 to Rs. 4.05 in Barwala (Haryana), and Rs. 5.30 to Rs.4.50 in Pune, said the report.

An estimated 1.3 crore live broiler birds and 20 crore eggs are sold daily in India on an average, and during the winter season, the numbers can climb to 1.5 crore and 28 to 29 crore. The bird flu scare, however, has led to consumption dropping by 30-40 percent in the last 4-5 days.