November 27, 2014
Indian poultry farmers step up opposition to entry of US frozen chicken
India''s poultry farmers are citing recent reports of bird flu outbreak in Kerala state to bolster their case against allowing the entry of American poultry imports, particularly chicken legs, which is imminent after the World Trade Organisation (WTO) ruled that India''s ban on the importation of American poultry products "violates global trade rules."
The Kerala Animal Husbandry Department confirmed Monday that thousands of ducks had recently died in Alapuzzha and Kottayam districts due to avian influenza. The health department also confirmed, according to reports, that avian influenza had caused the deaths of almost 17,000 ducks in Kerala''s paddy belt Kuttanad, which is the major supplier of ducks.
Last month, the WTO ruled against the Indian government''s ban on American poultry imports, opening India''s US$300-million market to the US poultry sector. India imposed the ban in 2007 to supposedly to prevent the spread of avian flu. India has three months to contest the WTO ruling.
An official of the Poultry Federation of India said the fresh case of bird flu would hopefully force the government to challenge the WTO ruling, which India has until January 14, 2015, to do so.
The federation claims that the domestic industry "has still not recovered from the twin strike of bird flu and high feed costs."
It warned the Indian government that the opening up of the Indian market to US imports would be "fatal for us".
Madan Maity, general secretary of the West Bengal Poultry Federation, feared that with the entry of American frozen chicken, they would lose the frozen chicken market. "Demand for frozen chicken from the hotels and quick-service restaurants was a major source of income for us, and the American imports will provide a huge blow to it".
Indian traders are also apprehensive about the possible dumping of chicken legs, which are unpopular among American consumers. MCR Shetty, president of the Karnataka Poultry Farmers and Breeders Association, said, "Subsidised by the American government, they (US importers) will dump chicken legs in India, which will be tough to compete against, hence we have to reduce our price, which will ultimately harm the grassroots poultry breeders."
The industry claims that the import curb, imposed in 2007, was instrumental in its growth so that India now exports to Middle Eastern countries. It said exports of poultry products increased from 516,753.83 tonnes in 2010-11 to 577,812.60 tonnes in 2012-13, adding that the sales of processed chicken has an annual growth rate of 20%.
"If protection is the way domestic industry will grow, the government should do that," Maity said.