The New Nation - Internet Edition

As reported recently by the media, high production cost of farming has caused shutdown of scores of poultry farms all-over the country resulting in supply shortage of poultry birds and eggs to the market. Soaring prices of poultry feed have significantly contributed to the increased production cost against the low selling prices of chickens and eggs, causing huge financial losses to small and medium farmers. Besides this, the outbreak of bird flu in the poultry farms in the recent past also struck a serious blow to the booming poultry business as farm owners had to cull many of their chickens. Whatever compensation they received in this regard were not adequate, which also put a negative impact on the poultry farmers. On the other hand, imposition of 33 per cent duty on the import of poultry feed raw materials in the budget for 2007-2008 fiscal year has caused a19 per cent increase to poultry feed prices.

According to reports, the price of a kilogram of poultry feed is now Taka 21-23. In October last year the price of per kilogram of poultry feed was Taka 13-16. Farmers apprehend that the price is likely to increase further in the coming days due to the effect of the imposed duties. The production cost of each egg is Taka 4.20 and each kilogram of chicken meat is Taka 80 against the selling price of each egg at Taka 3-95 and chicken meat at Taka 70-72 a kilo respectively. Suffering huge losses due to spread of deadly avian influenza, many small farm owners are reluctant to restart business. One owner was paid only Taka 3 lakh compensation for culling poultry birds against his investment of Taka 11 lakh. He could not start poultry business again in the last eight months after the government culled layers of his farm on March 23 this year.

Moreover, middlemen fix the price of eggs and meats and they are reportedly cashing in profit depriving the farmers, as most of them cannot sell their products directly. The price of poultry feed, raw materials like soya-meal, dry fishes and bone-meal has increased in the international market and it coupled with 33 per cent duties imposed in the annual budget hit poultry farming, according to the president of Bangladesh Poultry Industries Association. Instead of imposing duties in these crucial days of the industry that provides huge employment opportunities in the country, the government should provide fund and other facilities adequately for its

smooth running and expansion. The poultry owners have repeatedly appealed to the government to reduce the duties on the poultry feed raw materials but the authorities are yet to pay heed to their appeal. The government should reduce as much as possible the duties, if waiver is not possible, with a view to supporting the country's growing poultry industry that feeds the huge domestic market and employs thousands of people.