Chitwan's Poultry Farmers Hit by Quota

NEPAL - A new quota system is hitting Chitwan's poultry business.
calendar icon 26 October 2009
clock icon 3 minute read

Poultry entrepreneurs' decision to impose quota system in the supply of chicken to Kathmandu Valley has badly affected poultry industry in Chitwan, poultry farmers say.

My Republica reports that, in an attempt to exercise monopoly in supply of chicken to the Valley, entrepreneurs of Kathmandu and Dhading have been imposing quota system for the last couple of weeks.

Following the quota imposed by the entrepreneurs, supply of broiler chicken to the capital from the poultry hub has dropped to around five tonnes from 15 tonnes a day.

Entrepreneurs in Chitwan that meet almost 50 per cent of total poultry demand of the Valley said they were also facing difficulties delivering poultry products to Pokhara and Butwal, which are key markets to the district's poultry industry.

According to Janak Man Shrestha of Nepal Poultry Market Management Association, Chitwan supplies more than 50 per cent of its total poultry production to other districts, including the capital.

Mr Shrestha said: "Major poultry farms here are highly dependent on the capital's market to sell their products. The restriction in supplies has hardly hit Chitwan's poultry sector."

Entrepreneurs in Kathmandu and Dhading districts have been keeping vigil at different parts of Prithvi Highway to ensure that only five tons of chicken enter the capital from Chitwan.

"Our business will be severely affected if the imposition of quota system in the supply of chicken to valley, which is the largest market for our poultry products, continues," said Bidhya Bhusan Dangol, proprietor of DG Poultry, one of the largest suppliers of chicken to the capital.

Chicken price drops

According to My Republica, poultry entrepreneurs in the capital have lowered the price of broiler chicken to 210 rupees (NPR) per kilo from NPR225, citing rise in production and subsequent improvement in supplies.

"A meeting of poultry farmers, feed producers and poultry entrepreneurs held on 22 October took the decision to this effect," said Janga Bahadur BC, general secretary of Chicken Sellers' Association, an umbrella association of valley-based chicken sellers.

With the revision of price, poultry farmers will get NPR 140 per kilo for live chicken. Earlier, they were selling live chicken for NPR150 per kilo.

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