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on September 11, 2009

Poultry farmers suffer as Indian government hikes taxes

Taxes exceed the cost of production, say farmers.

Poultry farmers in India's Punjab are reeling from high taxes imposed by Jammu and Kashmir governments on the supply of birds from other states, reported. The government has raised tax duties to INR7.50 (US 16 cents) from INR2 (US 4 cents) per bird, which farmers say exceeds their cost of production.

Over half a million eggs and 40,000 to 50,000 chickens enter Jammu and Kashmir each day, mostly from Punjab's farms.

About 30% of the poultry farmers in Punjab have already shut down their farms due to the high cost of feed ingredients, chicks and labor, according to Sumit Chawla, a local poultry farmer. The taxes will result in further closures, he added.

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