How to revive poultry industry — Haryana
Policy

How to Revive the Poultry Industry — Haryana Leads

Consumer education + GST cut proposal on processed eggs to fight COVID-19 fallout

April 2020 Haryana, India AH & Dairying Dept
Farms12,000
Chicks / Day50 Lakh
Daily Turnover₹50 Cr
Sales Crash80%

Haryana has decided to educate the residents of the state that the consumption of eggs and chicken shall boost their protein level and strengthen the body's immune system, which is essential to fight coronavirus. Poultry is a major industry in Haryana. On March 28, a report published in some leading dailies said that the state's poultry farmers are culling birds and destroying eggs, making the industry the first casualty of the Covid-19 lockdown.

01

Haryana's Scale & The Pain

The state has about 12,000 poultry farms which produce nearly 50 lakh chicks every day. The daily turnover is Rs 50 crore. This includes the supply of broiler and eggs in Ghazipur mandi of Delhi and sale of one-day-old chicks to poultry farmers in Uttar Pradesh, Maharashtra, and other areas. So far, it is believed the industry has suffered losses to the tune of Rs 2,500 crore because many people stopped eating non-vegetarian food much before the lockdown kicked in.

02

Vundru's Order — Eggs, Meat & Fish as Essentials

Raja Sekhar Vundru, principal secretary, Animal Husbandry and Dairying Department, Haryana, has, however, issued a letter ordering that all municipal and rural bodies should allow sale of eggs, poultry meat, meat and fish as an essential commodity. Vundru also directed authorities to spread awareness on consumption of these items in their respective areas.

"These products are immunity boosters, and their sale should not be stopped."

— Raja Sekhar Vundru, Principal Secretary, AH & Dairying, Haryana
03

Education Programmes Across the State

Following this directive, Haryana is set to launch educative programmes across the state regarding the benefits of building strong immunity against any viral infection. Senior Haryana officers say that it is highly important to counter the vicious propaganda on social media against poultry products, which has put the livelihood of thousands of poultry farmers and their families at stake.

04

GST Cut Proposal — Processed Egg Powder & Liquid

Haryana has also proposed that a major step to revive the poultry industry can be the reduction of GST on egg powder and egg liquid, pasteurised and hygienically packed. Haryana has expressed concern that at present, poultry farmers are not incentivised to opt for processing eggs as powder or liquid because the GST levied on processed product is 28 per cent. Haryana has proposed to GST Council that the tax levied on egg powder or egg liquid should be brought down.

If the tax rate on processed eggs is lowered, farmers will be incentivised to install egg-processing machines — protecting them from temporary sale drops and enabling longer storage and diverse end uses.
05

Industry-Wide Losses — Rs 1,500-2,000 Cr / Day

For the last few months, the industry has been reeling under heavy losses following misinformation that the consumption of eggs or chicken could lead to the coronavirus infection. On February 10, the Union Ministry of Animal Husbandry clarified that chicken could be considered safe. Despite this, the misinformation campaign continued unabated over social media.

On March 9, Union Minister Giriraj Singh admitted that the poultry industry was losing Rs 1,500-2,000 crore daily on account of rumours about Covid-19. On March 19, a report in Poultry World said:

"India's poultry industry has been losing US$ 1.5 million per day due to lower prices. Since early-January, farmgate prices of broiler birds in Maharashtra have halved, whereas in neighbouring Karnataka, retail prices of poultry have dropped from US$ 0.67 to US$ 0.10."

— Poultry World, March 19
₹2,500 CrIndustry Losses
₹1,500–2,000 CrDaily Loss (Mar 9)
80%Sales Crash
28%GST on Processed Egg
06

Egg at Re 1, Chicken at Rs 20-25/kg

On April 2, Anup Kalra, executive director Ayurvet, said in a webinar conducted by All India Farmers Alliance (AIFA) that the price of an egg had fallen as low as Re 1 at places, and chicken was selling at Rs 20-25 per kilo. The cost of production of chicken stood at Rs 75 per kilo approximately for the poultry farmer.

States of Maharashtra, Tamil Nadu, Telangana, Karnataka, Odisha, Andhra Pradesh, and Haryana — the poultry hubs of the country — seemed worst affected, with farmers resorting to panic sales, and some even going as far as culling chickens. Amid cries for help, poultry farmers are seeking government assistance, stating that the Covid-19 crisis appears to be more widespread in India than the bird-flu outbreak of 2007.

If we can educate citizens about the health benefits and immunity-boosting features of eggs and chicken, it might help the industry battle this Covid-19 fight a little better.

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