Poultry industry seeks Government support to grow safer, better

Recognition as agri sector, poultry upgradation fund allocation, govt investment into cold storage are some of the requirements

The Rs 60,000 crore poultry industry in India require favourable policy decisions from the Centre to see growth of a safer chicken industry in the country. The industry is requesting the government to differentiate the value added meat from modernised units from the slaughtered meat when it comes to taxation and allocation of funds for the Poultry Technology Upgradation Fund, according a senior player in the sector.

Addressing deligates in Meat Tech 2014, a conference organised by the Tamil Nadu Technology Development & Promotion Centre of Confederation of Indian Industry, and National Research Centre on Meat, G B Sundararajan, managing director of Suguna Foods Ltd said, "As like Textile Technology Upgradation Fund, there exists a Poultry Technology Upgradation Fund. However, there is no allocation of fund."

He said that the industry requires an yearly minimum of Rs 100 crore to be allocated for the scheme and government has to invest into cold storage, freezer transportation, etc.

At present, the value added meat from modernised cleaning units attracts 5-14% Value Added Tax (VAT) in various parts of the country while slaughtered meat from the butcher shop is not under the purview of this tax. The export incentive under Vishesh Krishi and Gram Udyog Yojana (VKGUY) scheme was available for export of Egg and Meat earlier, and this has been removed. This has to be restored, he added.

Sundararajan also argued that the poultry industry has to be classified under the agriculture sector, which would provide more benefits to the industry. Besides, the subsidies available are also restricted to one time for a firm in lifetime, making it difficult for the companies to apply for the subsidy during an expansion of upgradation. The system, instead, should be linked with the quantum of investment, he said.

Suguna Foods, which currently works with around 22,000 farmers in 14 States, last year clocked a turnover of around Rs 5,300 crore and is expected to grow around 20% this year to around Rs 6,500 crore. The company, markets live broiler chicken, value added eggs and frozen chicken, claims that it ranks among the top ten poultry companies worldwide.