Poultry farmers ask government to withdraw 8 pc excise duty

According to the letter, there are hardly any poultry processing units in the country which bring in revenue to the Government. Even the existing units are running at a capacity utilisation of just 40 to 50 per cent.

With the imposition of excise duty, the federation president B M Chadha feared that the capacity utilisation of the processing unit, which is already very low, will further take a beating. PFI claims that the chicken processing units have not taken off as yet in thecountry and out of the seven or eight which started operation last decade, only three are working. They too are surviving with assistance from their parent companies.

While congratulating the minister on giving an agriculture-oriented Budget, Chadha said poultry being a rural-based employment generating activity it needs to be nurtured. But farmers instead face problems at the marketing level. An example is the Delhi poultry mandi where chicken is still sold through auction on the basis of kori (20 birds).

"Invariably the farmers are made to sell their produce below the cost of production. With the establishment of processing units, there will not only be stability in the poultry market but farmers would also get assured prices."

The federation fears that any duty will dampen whatever efforts are being made to open new processing units in order to bring stability in the poultry market. "It has been fully realised that survival of the broiler farmers depends entirely on the opening up of more and moreprocessing units."

"Above all and more importantly, the consumer will get chicken dressed and packed through the latest technology which will obviate the present system of hand dressing which is done in the most unhygienic and insanitary conditions,"

Earlier, in a pre-Budget memorandum, the federation had demanded that it be put on par with agriculture by allowing income-tax exemption under section 80 JJ of the Income Tax Act.