Price controls hit Sri Lanka’s small poultry producers
Sri Lanka’s small poultry producers will be hit badly owing to the price control imposed by the government without giving any concessions to the industry, poultry producers complained.Due to the high prices and shortage of raw materials for poultry feed production, chicken meat production was not within the control of poultry producers.Imposing a control price of Rs.480 per kilo of whole chicken without skin, has hit hundreds of small poultry producers in the island, President of Poultry Producers’ Forum Yakooth Naleem told the Business Times.
A large number of independent small farmers produce and supply chicken to hundreds of fresh chicken farm shops, which sell chicken without skin and any price control on this sector would definitely destroy the livelihood of these farmers, he pointed out.He further noted that under these circumstances, a shortage of chicken in the local market could be experienced in the country by April next year.In a letter to Prime Minister Ranil Wickremesinghe, Mr. Naleem stated that the poultry producers are only asking for a minimum immediate increase of Rs. 20 per kg of whole chicken with skin-on to protect the possible collapse of the industry.
He emphasised that there is no justification for imposing additional price controls on the chicken products, especially skinless whole chicken since customers can easily remove the skin themselves.The poultry industry is paying billions of rupees in taxes to the government unlike other competing industries especially locally produced fish, mutton or beef, he said adding that these substitute products for chicken do not have any price controls either.He noted that poultry producers have to pay VAT, NBT and income tax excluding other duties and indirect taxes, in particular tax (CESS) on maize and other consumables, which are also substantial in amount.
Sri Lanka’s feed prices were high and volatile, making cost of production high and uncompetitive, he said adding that the government grants a high protective, floor price for maize (corn) farmers and even after the local harvest was fully contracted, a long time period is taken to grant the maize import permits.As a result, the feed millers are losing the opportunity to import maize when the world market price is low; he said adding that the quality of poultry feed available in the market deteriorated due to high prices that prevailed in the market for raw materials.He pointed out that not a single budget presented in parliament during past few years has provided any assistance to the industry while some concessions mentioned in previous budgets are yet to be granted to poultry producers.