Hotels in the State have threatened to take chicken off the menu if the government does not intervene to check surging prices.
Chicken prices had nearly doubled in two weeks, the Kerala Hotel and Restaurant Association (KHRA) said, alleging that lobbies in other States were trying to create an artificial scarcity of chicken in Kerala to drive up prices. The price of broiler chicken in the State has reached ₹150-160 a kg.
In a statement, the association said 80% of the chicken sold in the State was to hotels. Owing to the COVID-19 pandemic, hotels are allowed only parcel delivery. Already struggling to recover costs, the hotels had been hit hard by the soaring chicken prices. If the prices continued to shoot up, hotels would be forced to drop chicken dishes from the menu, it said.
G. Jayapal, general secretary, KHRA, said wholesale dealers who monopolised the business in neighbouring States were slashing production to hike prices. “We want the government to increase production within the State to become self-reliant and prevent such price fluctuations," he said.
Supply disruption
T.P. Sethumadhavan, former director, Entrepreneurship, Kerala Veterinary and Animal Sciences University, however, attributed the price rise to lockdown disruptions, demand-supply mismatch and increase in cost of production. “Due to continuous lockdown and disruption in the supply chain, more than 50 % of the broiler growers and entrepreneurs, especially those running small farms, temporarily closed their business,” he said.
S.K. Naseer, general secretary, All Kerala Poultry Federation, said the boycott of chicken dishes was impractical as chicken was the main ingredient in several dishes. "The production cost for 1 kg of chicken is slightly less than ₹100. But if it sells for ₹55 or ₹60 a kg, how would they survive?" he asked. The increase in cost of feed and transportation had also made an impact on prices.
The government, Mr. Naseer said, should declare a base price for chicken so that farmers were not left in the lurch in case of decline in prices. The State’s share in the poultry business was also very low, unlike other governments such as that of Telangana. Poultry factories should be set up in all districts, he pointed out.
High fuel prices
Vinod John, managing director, Kerala State Poultry Development Corporation (Kepco), said the prices of soya and maize, main ingredients in poultry feed, were high. Combined with high labour and fuel prices, the cost of production of feed had increased, leading to a rise in market price. Feed was also difficult to come by in the market.
Dr. Sethumadhavan feels that the current price hike may continue till the next harvest season when the price of raw material for feed declines. The emerging festival seasons, including Bakrid, will favour consumer demand for chicken, he added.
