Treasury mulls granting incentives for poultry exports
Request for export incentives by poultry producers has received a favourable response from the Treasury at the 2015 pre-budgetary meeting held recently, official sources said.
The Treasury is considering a proposal made by poultry producers to grant them with some concessions to export chicken and eggs, so that the excess supplies in the market can be reduced. It was pointed out to the Treasury officials that feed millers will be encouraged to buy a substantial volume of maize and other raw materials from the Maha crop from the farmers by providing incentives from the budget.
The pricing formula introduced from the 2014 budget replacing price control on chicken has failed to create any impact on the viability of the poultry industry which was at stake due to its dependency on feed prices, as it is the dominant production cost. Therefore the government is looking at the option of maintaining the poultry industry at a stable level by encouraging their exports, official sources revealed.
When contacted to obtain views on this matter, Yakooth Naleem, Bairaha group Managing Director who is also the joint coordinator of the Poultry Producers Forum, told the Business Times that the industry would have preferred no price control whatsoever but instead the authorities should encourage exports. He said that the pricing formula was very complicated as it involves so many sectors.
Mr. Yakooth revealed that Sri Lankan producers have exported 600,000 of hatching eggs to the Middle East earning US$250,000 (Rs. 30 million).
He said that his company has exported 300,000 kilograms of chicken to the Middle East at a value of Rs. 12 million. This reflects the country’s export potential and the government should extend some concessions to encourage poultry producers towards this end, he added.