The federal government has allowed the importation of maize for poultry feed and vaccines at zero duty, aimed at reducing input costs in poultry production, which will help in decreasing consumer prices in the country, according to The Nation of Pakistan.

According to sources of the ministry of livestock, poultry vaccines, feed items and other inputs used in poultry feed has been zero-rated in order to reduce input costs in poultry production,.

Responding to a question about steps taken by the government to reduce poultry prices in the country, the sources said that Sales Tax exemption had been granted for uncooked poultry meat to encourage establishment of value chain industry.

In order to facilitate establishment of the value-chain industry, government has allowed import of poultry meat processing machinery/equipment, poultry equipment (incubators, brooders, evaporation cooling pads, cooling system, grain storage for poultry), at zero per cent custom duty.

This will increase the shelf life of poultry meat, limiting middle man exploitation of farmers and consumers and assist in stabilising the chicken prices to some extent, says The Nation.

For providing protection to domestic poultry industry, 25 per cent custom duty has been imposed on import of poultry meat and their products.

In order to deal with bird flu, an umbrella project titled National Programme for Control and Prevention of Avian Influenza amounting to 1180.148 million rupees (PKR) is already under implementation in the country.

Regarding steps to compensate poultry farmers, the sources said that to restore confidence of poultry farmer an amount of PKR 324 million had been allocated under the project for compensation to farmers whose birds were culled on account of bird flu. Under this project, an amount of PKR 20.5 million has been disbursed to affected farmers during 2007-08.

These measures would help to increase the poultry production and price stabilisation in the country, the sources hoped.

When asked to comment on the hike of poultry prices, he said that the increase in per capita income and increased of urban population is a main cause of demand of chicken, which ultimately led to increased price of poultry meat. Moreover, the lower price of chicken compared to mutton has prompted more consumers preference and demand, the sources added.

The increased input costs like feed – which accounts for 65 to 70 per cent of the total cost of poultry production – led to an overall increase in cost of production of chicken attributing to increased prices, according to The Nation.