Zero duty on maize, vaccines to help reduce poultry prices

ISLAMABAD (APP) - The federal government has allowed import of maize for utilization poultry feed and vaccines at zero duty aimed at reducing input costs in poultry production which will help in decreasing poultry prices in the country.
According to sources of the ministry of livestock, in order to reduce input costs in poultry production, poultry vaccines, feed items and other inputs used in poultry feed has been zero rated.
Responding to a question about steps taken by the government to reduce poultry prices in the country, the sources said that Sales Tax exemption had been granted for un-cooked poultry meat to encourage establishment of value chain industry.
In order to facilitate establishment of value chain industry, government has allowed import of poultry meat processing machinery/equipment, poultry equipment’s (Incubators, Brooders, Evaporation Cooling Pads, Cooling system, grain storage for poultry), at zero per cent custom duty.
This will increase the shelf life of poultry meat, limiting middle man exploitation of farmers and consumers and assist in stabilizing the chicken prices to some extent.
For providing protection to domestic poultry industry, 25 per cent custom duty has been imposed on import of poultry meat and their products.
In order to deal with bird flu, an umbrella project titled “National Programme for Control and Prevention of Avian Influenza” amounting to Rs.1180.148 million is already under implementation in the country.
Regarding steps to compensate poultry farmers, the sources said that to restore confidence of poultry farmer an amount of Rs.
324 million had been allocated under the project for compensation to farmers whose birds were culled on account of bird flu. Under this project, an amount of Rs. 20.5 million has been disbursed to affected farmers during 2007-08.
These measures would help to increase the poultry production and price stabilization in the country, the sources hoped.
When asked to comment on the hike of poultry prices, he said that the increase in per capita income and increased of urban population is a main cause of demand of chicken which ultimately led to increased price of poultry meat. Moreover, comparatively less prices of live chicken than mutton prompted more consumers preference and demand, the sources added.
The increased input costs like feed (Contribute 65-70 per cent in total cost of poultry production), led to an overall increase in cost of production of chicken attributing to increased prices.