Factors of The Growth of The Poultry Industry in India: 1. Government Initiatives

Indias poultry industry represents a major success story.
While
agricultural production has been rising at the rate around 2 percent per
annum over the past two to three decades, poultry production has been
rising at the rate of around 8 percent per annum, with an annual turnover of
US$ 7 500 million. `Today India is the third largest egg producer in the world
(after China and the United States), and the nineteenth largest broiler
producer. Undoubtedly, this impressive growth is a result of several factors
such as active developmental support from the state and the central
government, research and development support from research institutes,
international collaboration and private sector participation.
Factors of the Growth of the Poultry Industry in

India
1. Government initiatives
In June 1991, India launched a policy of economic liberalization with a view to
integration in the world economy. Under the new policy regime, the
government sought to simplify rules and regulations governing industry,
liberalize taxation policies and relax foreign exchange regulation. Initially,
the thrust of liberalization rested only on the industrial sector; the agriculture
sector was not touched.
2. Financial Incentives
The Indian agriculture sector gets direct and indirect subsidies in the form
of fertilizer, pesticides, electricity, etc. Although the poultry industry is an
integral part of agriculture, and treated on a par with the rest of the
livestock sector in India, it faces restrictions on its use of agricultural land,
attracts higher electricity tariffs and sales tax than agriculture, pays tax
on income earned from poultry farms, and is subject to different land and
labor law.
3. Veterinary health care services

The farmers are well aware of the need to safeguard the health of their
birds. A number of hatcheries also provide animal health services to
farmers. Veterinary products and diagnostic facilities are readily available
to most farmers. Large farmers/integrators employ their own veterinary
consultants. The danger of flock disease is relatively low in India.
The prices of vaccines, animal health products and food additives in India
are either comparable or slightly higher than international prices. In terms

of quality, they meet international standards.
4. Food-safety standards and trade in processed foods

International trade in processed food has grown substantially during the past
two decades. The Indian poultry sector, particularly the egg processing units,
has already started integrating itself into the global system in the light of the
SPS and TBT agreements. All of the egg processing units in India already
operate HACCP systems. India has also prepared and implemented its own
residue-monitoring plan for egg and chicken products.
5. Consumer demand and preferences

Patterns of poultry meat and egg consumption in India show certain
peculiarities. First, the Indian poultry market remains primarily a live bird
market. The consumption of chilled and frozen poultry products is very small
only 5 percent of the total production is sold in processed form; all the rest
is sold alive. Second, the demand for eggs is seasonal very low in summer
compared to other seasons of the year. The conclusion that can be drawn
from this is that eggs seem to have entered the vegetarian diet of urban
people but not of rural people. Note, however, that although rural people
exhibit lower preference for eggs compared to urban people, the change in
the preference pattern in favor of eggs is higher in rural areas than in urban
areas.
6. Trends in feed prices: maize and soybean

Feed, is the largest cost in broiler and egg production, constituting 70
percent of the total. The main feed ingredients are maize, soy, rice bran and
groundnut cake. Maize and soy the most widely used. Thus, the price
movements of these two feed items will have a direct effect on the prices of
eggs and broilers. Moreover, the future growth of the poultry industry will
depend on the availability and price of maize and soy.
7. Role of large Retailers

India is at present the most attractive destination for the worlds biggest
retailers such as WallMart, Woolsworth, Tesco, Reliance, Bharati, Birla, Tata
and Godrej. All top retailers are making a beeline for the Indian market. The
latest report by AT Kearney and CII (2006) shows India, China and the
Russian Federation at the top of the annual list of most attractive emerging
markets for retail investments.
8. Disease Outbreaks
Avian influenza has been circulating for centuries with four known outbreaks
recorded in the last century. India, however, remained free of the disease
until 2006. Control measures included culling the entire poultry population
and destruction of eggs, feeds, consumables, litter and other potentially
infected material within a radius of 10 km from the location of the outbreak;
restriction on the movement of poultry, poultry products and personnel to
and from the affected area; and cleaning and sanitation of the infected area.
How Pakistan Can Benefit from India
Import Duties to be enhanced

India on entry of and commencing imports by multinational fast food
chains, the Indian government clamped 100% import duty on
importation of chicken meat and its value added products. Our
government reduced the import duty from 50% to 25%. Though the
bonded rate of duty filed by the government of Pakistan under WTO
regime was 100%. In view of higher cost of production, a minimum
protective rate of duty should be increased from 25% to 50%.
Free Trade Agreements
Free Trade Agreements should be Fair Trade Agreements. Both

countries should have the same regulations and protocols ensuring
that both countries have equal opportunities to export. Pakistan should
seek assistance to improve its capacity to ensure clean and safe
agricultural shipments.
More Government Initiatives

Government should introduce new and improved policies in order to
boost the poultry industries in Pakistan.
Disease Control
Vaccines and feed could be closely monitored to ensure maximum
productivity. The prices of vaccines, animal health products and food
additives should be of reasonable price and should meet international
standards in terms of quality.
Fiscal Incentives
Fiscal incentives should be taken to reduce cost of production to bring
about economy of scales.
Modern Poultry Equipment

Adequate poultry equipment should be provided to the farmers, to
ensure proper feed and water to be provided to the poultry.
Modern Communication Facilities

More Financial Credit Required
Adequate Healthcare Services for the Livestock

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Indias poultry industry represents a major success story.

Factors of the Growth of the Poultry Industry in

3. Veterinary health care services

are either comparable or slightly higher than international prices. In terms

4. Food-safety standards and trade in processed foods

5. Consumer demand and preferences

6. Trends in feed prices: maize and soybean

7. Role of large Retailers

How Pakistan Can Benefit from India

Import Duties to be enhanced

Free Trade Agreements

Free Trade Agreements should be Fair Trade Agreements. Both

More Government Initiatives

standards in terms of quality.

Modern Poultry Equipment

Modern Communication Facilities

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