The coronavirus has had a huge impact on daily life from the man on the street to businesses. And the poultry sector, even more essential than ever, has not gone unscathed.
Indian poultry sector employs more than 1 million farmers and contributes US$ 16.18 billion (INR 1.2 lakh crore) to the country’s GDP directly.
The industry also provides direct benefit to more than 10 million maize and soya agriculture farmers and providing market for soya bean and maize farmers in India.
The sector engages 50 million citizens in direct and indirect employment in poultry production, trade, feed, agriculture crops, pharmaceutical, logistics, and poultry based products, exports, among others.
As the whole world is fighting the coronavirus (Covid-19) outbreak, it is having a huge impact of Indian poultry sector.
The coronavirus outbreak and the consequent lockdown have pushed the poultry sector in the country into a crisis with losses projected at Rs 22,500 crore beginning February this year.
The recent Covid-19 lockdown has impacted the domestic poultry industry severely with Q4 FY2020 being the worst quarter in recent time.
Restricted logistics due to lockdown led to supply glut in local market, further adding to pressure on realization. Consequently, sizable losses in the last 2-3 months wiped out almost all profit booked during 9mFY2020.
The total broiler market size was estimated at 4.7 million tons (carcass weight), translating into volume growth of ~2% Y-o-Y during CY2019. At a per capita meat consumption of 3.4 kg p.a., the total broiler meat market size was over Rs. 85,000 crore in terms of retail price. The domestic table egg production for CY2019 was estimated at 109 billion eggs translating to a per capita egg consumption of 80 eggs p.a. and market size of over Rs. 45,000 crore.
The AIPBA appealed to the Centre to provide wheat and rice of ‘Feed Grade’ from the old stock of government at a subsidized rate of Rs 10 per kg.
Association requested a restructuring of loans allowing conversion of existing working capital loans cash credit (CC) limits to term loans with two years moratorium.
It further sought exemption of GST on Soya Seed and Soya Meal which has added to the input cost on livestock feed to the farmers.
The industry had faced a similar situation in 2006 when there was massive bird flu attack on poultry sector.
The government of India had then provided relief measure to the poultry sector by announcing interest subventions and increasing credit duration to the poultry industry for a limited time period and provided millions of tonne of maize at the rate of Rs 4 per kg from the government stock.
Primary poultry production is still going strong and the need for knowledge is ubiquitous. One could say that people still have to eat, even when they are in quarantine at home. But that is only true to some extent. With people not travelling anymore, not allowed to go to restaurants and events, consumption in the food service industry will drop dramatically.
By- Dr Rajendra prasad, Poultry consultant, Hyderabad.
