COUNTRY REPORT ▶▶▶


has made a representation to India’s finance minister Nirmala Sitaraman asking for help for farmers in this time of crisis. In a letter to Ms Sitaraman, Bahadur Ali, chairman of the Associa- tion and also managing director of the IB Group, says the re- cent outbreak of coronavirus in China and related develop- ments in India have crippled the poultry sector and is forcing the industry in the direction of bankruptcy. The letter adds that the situation is far worse than the last two bird flu inci- dents of 2006 and 2010. Seeking a rescue package for the poultry sector, the letter to the finance minister has requested that the government pro- vide “an interest subvention, conversion of existing working capital loans to term loans with a two-year payback moratori- um and the issue of fresh working capital” which, it states, will help the industry to tide over the current crisis. The letter adds that the Indian poultry sector contributes US$ 1200 bil- lion to India’s GDP and is a major provider of livelihoods and therefore crucial to the country’s economy. Another delega- tion of poultry growers from Maharashtra have also submit- ted a status report to the government and the ministry of An- imal Husbandry and Dairy Development demanding a revival package for poultry owners. Drawing comparisons with the crisis faced by the industry during the bird flu incident when the central and state governments sanctioned compensation per bird for poultry players, farmers have demanded a similar package to curtail losses during the current crisis.


Threat to future growth plans The delegation has said that the current crisis threatens the Indian government’s National Action Plan for the egg and poultry industry. The action plan launched by the govern- ment is intended to double farmers’ incomes by 2022, feed the growing population and help raise the socio-economic status of India’s rural economy. Putting forward measures to enhance poultry production targets by 2022-2023, the action plan states that the 3.26 million tonnes (MT) of chicken meat available (baseline data for 2015-2016) needs to be bumped up to 6.20 MT by 2022. The plan states that 5.167 billion com- mercial broilers would be required by 2022, instead of 3.326 billion commercial broilers (2015-2016 data). An addi- tional 1.840 billion broilers would be required over the base period, with an additional 31-32 million chick placements each week. Similarly, the plan notes that egg production is currently at 5-6% per annum (compound annual growth rate). With newer scientific advances the plan suggests a sub- stantial increase in egg production – like 500 eggs in 100 weeks compared with the current 320+ eggs in 72 weeks – could be achieved by 2022-2023 provided there is adequate government policy support for the poultry industry. It also suggests the government could use fiscal measures to sup- port rural backyard poultry which accounts for about 29% of total egg production. The plan notes that there is a need to increase egg produc- tion. The white paper states: “one of the great challenges cur- rently facing us is how to feed an estimated 9 billion people worldwide by the year 2050, 40% more than presently inhab- it the planet; even more formidable is the challenge of achieving this without damaging the environment. The chal- lenge is how to increase the food supply, particularly food of animal origin. While rural backyard poultry systems play a pivotal role in achieving nutritional security in rural areas”. The current crisis affecting the poultry sector, however, has compromised many of these plans and is expected to further undermine growth unless the government intervenes.


The current cri- sis threatens the Indian govern- ment’s National Action Plan to grow the egg and poultry industry.


▶ POULTRY WORLD | No. 4, 2020


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PHOTO: ANP, MANJUNATH KIRAN


PHOTO: ANP, SAM PANTHAKY


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