Lahore – The day-old chick price has nosedived to Rs-4 while the cost of production is well above Rs 35, as evaluated by the Commissioner Animal Husbandry for the High Court at Peshawar as far back as 2012. The current cost is even higher.
The poultry producers claimed that the serious loss to the Parent Stock farmers i.e. producers of Day Old Broiler chicks has already started by way of premature selling of their breeding flocks for meat purposes and on the other hand, they have cancelled some of their orders for placement of Parents Stocks, which would lead to reduction in production of parents by the Parent Stock producers i.e. grandparent farmers who will have no option but to reduce their imports of Grandparents, a decision which would be further accentuated by the prevalent import duties of 21 percent.
Once the grandparent placement is reduced, it will take upto 2½ to 3 years for it to come back to the position from where it dropped during which time the broiler chick production will be substantially reduced, consequent to which supply of table birds and meat will be reduced, as a result prices will shoot up very high.
The parent stock farmers are concerned about the extremely low price of Day Old Chicks that has been prevalent for the past two years.
They said that in presence of 21 percent import duty, the curtailment of imports will begin at a much earlier stage than it would have with duty free imports.
All seeds for food production like seeds for vegetables, cash crops, etc, are subject to a maximum of 3 – 5 percent import duty. Poultry seed is the only seed which has been subject to 21 percent import duty.
The 21 percent import duty on Grandparents amounts to Rs 690 on one Day Old female baby chick, which when grown up produces female parents.
There are other levies and taxes total amounting to Rs 270 per female grandparent chick, the major being landing charges of 1 percent and half a percent Civil Aviation throughput charges.
The Pakistan Poultry Association suggests that the entire import duty including Regulatory Duty should be withdrawn immediately.
There is no cogent reason to levy regulatory import duty on Grandparents.They are not produced within the country nor are a luxury item. Grandparents are produced by only three genetic research companies in the world – all of them are American companies.
The Grandparents are being imported by only four or five companies in Pakistan and the total quantity of imports is less than 400,000 females Grandparents per annum known as the ‘D-Line’.
The total revenue for the exchequer would be an insignificant amount, but the total burden of the cost of import duty has to be borne by the Day Old baby GP Chick which we are certain, cannot be borne by them.
It will have to be borne by the consumers in the face increased prices because of ultimate lower production of Parent Stocks.
The farmers have contributed very substantially in filling the protein gap and the food demand. From the days of being the most expensive meat in the country, it has become the lowest priced meat in the country and it has put a serious check on the prices of other meats.
The real price deflated to the extent of inflation over the years is cheaper than it was 20 years ago.
Hope the economists would bare this out.
The Poultry Association recommended that the import duty on Parent Stocks and Grandparent stocks should be maintained at 3 percent import duty i.e.the same as being levied on seeds for other agriculture produce.
Source: The Nation