Poultry farmers in the Indian state of Andra Pradesh, one of the country's main poultry-producing regions, may soon be enjoying significantly cheaper energy costs.

Speaking at the seventh edition of the trade event Poultry India in late November, Sri N Kiran Kumar Reddy, chief minister of Andra Pradesh, commented that the state government would extend all possible help to the industry. The state authorities have already removed taxes on eggs and chickens, and he added that the power tariff for the trouble-hit sector would be reduced by 50 percent soon.

However, there were calls for further tax reductions. Chakradhar Rao, president of the Indian Poultry Equipment Manufacturers' Association (IPEMA) called on the minister to reconsider the imposition of value-added tax on poultry equipment, to encourage the production of innovative products at prices affordable to poultry producers, and to help Indian equipment manufacturers gain a more significant foothold in foreign markets.


Commenting on the current state of the industry, Ranjit Reddy, president of the Andra Poultry Breeders Association, said that while the Indian poultry industry had grown, per capita consumption could be higher, and that the sector was being hit hard by high input costs. "For the last two years, layer and broiler farming is facing a tough time due to sky rocketing raw material prices and increases in transportation costs.

"Poultry is going a rough phase now with sky rocketing raw material prices, increasing freight charges and adverse disease conditions. The cost of production is exceeding the realization price, and farmers have been suffering for a long period. Many farms have suffered losses, and peculiarly this time both the layer and the broilers farmers have had to face the brunt," said Ranjit Reddy.

He continued that import duties and taxes on imported feed ingredients and equipment were also hitting poultry producers hard, and their reduction or removal would go some way to helping the sector. Additionally, he noted, the 20 percent tax applied to processed chicken was doing nothing to encourage the growth of the processed meat sector.