To deal with the impending competition of cheaper imports of chicken legs from the United Sates, Indian industry has demanded permission to import at least one million tonne soya meal. This will help the poultry industry to get cheaper raw material and reduce its cost of production, which is thrice the cost of production of US chicken legs.
As India has lost its case in the World Trade Organisation to oppose import of US chicken legs, the domestic industry expects to see the impact of the decision in 12 to 18 months.
"The cost of processed chicken in India is $3/kg while the cost if the imported chicken leg from the US will be $1/kg," said Amit Saraogi, chairman, CLMFA of India, the organisation representing the feed industry.
Cost of Indian soya meal is higher than the global soya meal because our productivity is much lower than the productivity of countries like the US, which have GM soya.
Indian poultry industry, which is growing at 7 per cent to 8 per cent per annum, is worth Rs 80,000 crore, 65 per cent of which is poultry while 35 per cent is accounted for by eggs.
Chicken breast is considered as the premium product in the US and chicken legs are just a by product. But chicken legs is the main product for Indian market. Mr Saraogi said that the current difference between domestic soya meal and imported soya meal is about $250.
The domestic industry is also deliberating with the government about stricter implementation of food safety standards for both domestic as well as imported poultry products. Representatives of the corn industry too expressed need to import the feed raw material.
Source:economictimes.indiatimes.com
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