Imports of chicken and eggs will hit farmers, says association
The All Island Poultry Association (AIPA) has criticised the government’s recent decision to import 2,000 tonnes of chicken and 50 million eggs, a move which they opine as ‘hasty’ and one that could badly hit the local poultry industry.
According to All Island Poultry Association (AIPA) chairman Dr D D Wanasinghe, there is a monthly surplus of around 2,000 metric tonnes of chicken at present in the market proving that the shortage of chicken is a clear misconception although there is a marginal shortage of eggs.
“We are concerned that the government has hastily ordered the import of chicken and eggs into the country due to a false estimation of demand and a misconception about the available stock which is going to badly hit the survival of an estimated 75,000 local poultry farmer families and another 100,000 input suppliers,” Dr Wanasinghe told The Bottom Line.
According to All Island Poultry Association (AIPA) chairman Dr D D Wanasinghe, there is a monthly surplus of around 2,000 metric tonnes of chicken at present in the market proving that the shortage of chicken is a clear misconception although there is a marginal shortage of eggs.
“We are concerned that the government has hastily ordered the import of chicken and eggs into the country due to a false estimation of demand and a misconception about the available stock which is going to badly hit the survival of an estimated 75,000 local poultry farmer families and another 100,000 input suppliers,” Dr Wanasinghe told The Bottom Line.
He says his recent talks with all of the 11 ISO-certified chicken processors had revealed out that there were enough stocks of chicken to be consumed in the country and the shortage was a misapprehension by senior government authorities.
“Of the 10,000 tonnes of chicken we produce a month, the assessment of requirement is only about 8,000 tonnes a month leaving us with a clear surplus every month,” Dr Wanasinghe said adding that the government was overestimating demand to as high as 12,000 tonnes a month and was trying to kill the local industry by flooding the market with cheaper imports.
He said that although there is a price control for chicken of Rs 350 at present, it is presently even selling as low as Rs 315 a kilo, specifically in areas such Ja-ela, Wattala and Kandana, where the output was high.
“The monthly surplus in local production would be more than enough to meet higher demand during the upcoming Christmas holiday season and there is no need to import chicken,” he pointed out.
In the case of eggs, he said the association had forewarned the authorities about a possible shortage as early as July 2010 and had requested the Ministry of National Livestock and Rural Community Development to import 400,000 pullets. This request was not heeded at the time, he pointed out.
“If it was allowed at the time, we would have had the requirement of eggs by now but what I heard is now they are importing both pullets and eggs, which decision will also leave a surplus of eggs in the future,” Dr Wanasinghe outlined.
Budget
He said the 2011 Budget had not met the local poultry industry’s expectations, specifically with regard to the request towards the reduction of Value Added Tax (VAT) to a reasonable level.
“The local poultry industry didn’t get any benefit from the budget. We had requested the government to reduce the VAT to a reasonable level as consumers presently pay a VAT of Rs. 57 on every Rs. 350 a kilo of chicken. We had also asked for some duty concessions presently with regard to the transportation of the items,” he said.
Sri Lanka has decided to import upto 2,000 tonnes of chicken from India to meet shortages in the domestic market ahead of Christmas holiday season.
The government was immediately placing an order for 500 tonnes with the balance to be imported before the holiday season, trade ministry officials said.
The number of foreign holiday-makers has increased by 43.5 percent in the first 10 months of this year compared to 2009, with nearly half a million travelling to Sri Lanka to sample its beaches and wildlife.
“Of the 10,000 tonnes of chicken we produce a month, the assessment of requirement is only about 8,000 tonnes a month leaving us with a clear surplus every month,” Dr Wanasinghe said adding that the government was overestimating demand to as high as 12,000 tonnes a month and was trying to kill the local industry by flooding the market with cheaper imports.
He said that although there is a price control for chicken of Rs 350 at present, it is presently even selling as low as Rs 315 a kilo, specifically in areas such Ja-ela, Wattala and Kandana, where the output was high.
“The monthly surplus in local production would be more than enough to meet higher demand during the upcoming Christmas holiday season and there is no need to import chicken,” he pointed out.
In the case of eggs, he said the association had forewarned the authorities about a possible shortage as early as July 2010 and had requested the Ministry of National Livestock and Rural Community Development to import 400,000 pullets. This request was not heeded at the time, he pointed out.
“If it was allowed at the time, we would have had the requirement of eggs by now but what I heard is now they are importing both pullets and eggs, which decision will also leave a surplus of eggs in the future,” Dr Wanasinghe outlined.
Budget
He said the 2011 Budget had not met the local poultry industry’s expectations, specifically with regard to the request towards the reduction of Value Added Tax (VAT) to a reasonable level.
“The local poultry industry didn’t get any benefit from the budget. We had requested the government to reduce the VAT to a reasonable level as consumers presently pay a VAT of Rs. 57 on every Rs. 350 a kilo of chicken. We had also asked for some duty concessions presently with regard to the transportation of the items,” he said.
Sri Lanka has decided to import upto 2,000 tonnes of chicken from India to meet shortages in the domestic market ahead of Christmas holiday season.
The government was immediately placing an order for 500 tonnes with the balance to be imported before the holiday season, trade ministry officials said.
The number of foreign holiday-makers has increased by 43.5 percent in the first 10 months of this year compared to 2009, with nearly half a million travelling to Sri Lanka to sample its beaches and wildlife.
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