KARACHI: Poultry farmers have demanded the federal government immediately withdraw Federal Excise Duty (FED) on chicks, citing that prices have plunged to a record low and the levy is severely adding to their cost of production.
Chick prices, which once stood at around Rs 227 per chick, have slumped to Rs 40-50 in recent weeks. Farmers noted that the FED was imposed when chick prices were high, but the situation has now reversed, leaving producers unable to recover their costs.
Imran Khan, a leading poultry farmer and rate committee member from Balochistan Chapter said broiler chicken production has surged to about 170 million birds per month, against a demand of only 140 million. The oversupply has triggered a sharp fall in prices of both chicks and broiler chicken in the domestic market.
“Farmers are incurring heavy losses. The cost of production stands at Rs 350-380 per kilogram, while chicken is being sold at Rs 270-280 per kilogram, resulting in losses of up to Rs 100 per kilogram,” Khan said.
He further added that the FED on chicks is directly hurting farmers as it cannot be passed on to consumers. Meanwhile, the benefit of lower farm-gate prices is also not reaching end consumers due to profiteering by middlemen and shopkeepers.
“The gap between farm and retail prices should not exceed Rs 20-30 per kilogram, but retailers are charging much higher margins. Authorities, particularly commissioners, who are responsible for price stability, must take serious notice of this price discrimination and ensure that profits remain reasonable so the lower prices relief can actually reach consumers,” Khan urged.
He informed that to ensure transparency in chicken prices, the Poultry Farmers Association has decided that daily poultry rates will be announced at 2 pm and, if required, revised at 10 pm in accordance with prevailing market conditions.
Meanwhile, the Sindh-Balochistan Poultry Farmers Association held its quarterly meeting under the chairmanship of Association President Saleem Baloch. The proceedings were conducted by General Secretary Tariq Aziz.
During the meeting, new rate committees were formed. Ghulam Muhammad was appointed as convener of the Karachi Rate Committee, while Dr Aqeel was named convener of the Hyderabad-Mirpurkhas Rate Committee. Other members elected included Dad Kareem Ali of Pioneer Feed, Imran Khan, and M Shakir.
Copyright Business Recorder, 2025
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