Chicken prices rise over ban on cattle sale for slaughter: Assocham

Rising per capita incomes and growth in QSR formats are other key reasons for growing demand

Following the Centre's ban on the sale of cattle for slaughter in animal markets, the chicken prices in India have been rising and are projected to go up by 25-30 per cent in the near future on the back of likely increase in the chicken consumption by 35-40 per cent, according to the Assocham's study.

Poultry wholesale price index has risen by 22 per cent, while that of beef and buffalo meat declined about 3 per cent between May 2014 and March 2017.

The chicken production has been steadily growing at a compounded annual growth rate (CAGR) of 10-12 per cent, while its consumption has been clocking a CAGR of 15-18 per cent since the past few years.

The study noted that between June 2013 and May 2014, there was an increase in wholesale price levels of beef and buffalo meat by 10 per cent, while that of poultry chicken declined by about nine per cent.

The ban and related controversies have come as a blessing in disguise for poultry firms in Andhra Pradesh, Haryana, Karnataka, Kerala, Maharashtra, Punjab, Tamil Nadu, Telangana, Uttar Pradesh and other key regions, an Assocham official said.

Rising per capita incomes and growth in quick service restaurant formats are other key reasons for growing demand and consumption of poultry meat in India.

Meanwhile, AS has suggested the government to encourage poultry farmers to give them a level playing field against developed countries in terms of export/import market.

India should also attract foreign direct investment (FDI) opportunities in the poultry segment, especially in areas like breeding, medication, feedstock, vertical integration and processing.

As part of its analysis, Assocham had conducted a survey of about 100 poultry shops in different states, whereby the majority of the respondents confirmed the demand was picking up despite the onset of summer.

Most of the respondents claimed that poultry demand and prices haven't fallen during this summer, which is against the norm, because of the ban on cattle sale for slaughter.