Broiler Prices Tumble in India - INDIA - Live chicken prices, which were firm in India for the last two months, have tumbled this week to Rs 29 per kg from last week's Rs 32.

But leading chicken growers do not intend to press the panic button now saying that the slow movement this month is quite anticipated.

The State's broiler co-ordination committee in its weekly price review meet on Monday cut the farm-gate price of live chicken by Rs 2. The chicken producers said the revision in the wholesale rate was made in the face of sluggish movement of the birds primarily propelled by abstinence observed during the Karthigai month. Consumers in Kerala also avoid eating non-vegetarian foods during this month as they undertake pilgrimage to Sabarimalai. According to the poultry trade sources, this is also part of the cause resulting in the fall of broiler prices.

However, major broiler producers feel that the slide in chicken prices would be temporary and they anticipate the demand to pick up by third week due to Christmas and New Year festivities. They said unlike last year when the price on most occasions fell below the cost price, i.e, below Rs 26, chicken prices in the last six months stood ground by remaining above the cost price, i.e in the Rs 29-Rs 30 range. In fact, chicken price in the past two months have ruled at around Rs 32 per kg with the consumption levels keeping its pace almost with the production.

It is likely that the chicken farms would be willing to go along with the market force for the next two to three weeks, and the producers feel any intervention to restrict the broiler production could be considered only if they faced sustained pressure in selling or when forced to sell far below the cost price.

Source: eFeedLink - 3rd December 2003