FAISALABAD: Enforcement of unrealistic poultry rates would not only deprive masses from the cheapest source of protein but also prove disastrous for this sector in addition to further rise in the prices of poultry products.
Expressing concern over the fixation of poultry rates and its enforcement through brute administrative force, Dr Sajjad Arshad, Senior Vice President Faisalabad Chamber of Commerce & Industry (FCCI) and former Central Chairman Pakistan Poultry Association (PPA) said that market forces play a key role in determining the rates of different commodities all over the world but in Pakistan still administrative steps are being considered as a panacea to fix the purely economic issues.
“This attitude is unable to resolve the issue,” he said and added that it further complicates the situation. He said that there was a huge difference of Rs 50 in market and government rates which has shaken the entire structure of the poultry business.
He said that in the prevailing situation the business is not possible as farmers as well as shopkeepers both are feeling themselves unsafe and insecure. He said that as per ground realities, the poultry farmers have to bear the unprecedented losses but the government never comes to their rescue.
“The demand and supply play a productive and key role in compensating their losses,” he said and added that now when farmers were getting some profit, the administrative intervention has created a chaos like situation. He said that all over the world and even in African countries, the governments focus on maintaining the quality of products while the rates are determined by the market forces.
Dr Sajjad Arshad said that as investors start getting profit, it incentivizes others to invest and enhance production which plays its role in bringing down rates automatically. About the poultry industry in Pakistan, he said that the cost of production has increased manifold.
“The chick of one day was available at Rs 60-70 which has now jumped to Rs 220,” he said and added that rates of poultry medicines have also increased 400-500%. He said that the electricity cost of one shed was 1.5 lac which has now crossed the figure of 9 lac while the rates of poultry feed have also increased phenomenally.
SVP FCCI said that the number of poultry sheds including broilers and breeders have also been trimmed to 50% due to high cost of production. He said that there were 150 breeder’s companies in Pakistan which has now reduced to 30 because of continuous inflation and high cost of production. He further said that existing farmers are also working with 50% installed capacity.
He said that the government should resolve this economic issue by providing a business-friendly environment instead of creating harassment in the market through administrative intervention. He said that farmers would prefer to expand their capacity if they start earning profit and in this situation an increase in production would bring down the prices through a highly competitive environment.
He rejected the fixation of the official rate and demanded that the government must allow market forces to play its dynamic role in bringing much needed price stability in the poultry market.