Poultry Sector in J&K: FCIK calls for policy overhaul to revitalize the industry

5 November 2024

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Srinagar, Nov 3: The Federation of Chambers of Industries Kashmir (FCIK) has urged the government to revamp its policies governing the poultry industry to rejuvenate local farming in Jammu & Kashmir. Emphasizing the need to unlock the region’s production potential, FCIK proposed the formation of a specialized committee, in collaboration with the Chamber, to thoroughly assess the industry’s challenges and recommend actionable solutions for its revival.

The FCIK highlighted that the poultry industry had thrived during the first regime of Omar Abdullah’s government meeting around 85% of the local demand for chicken through domestic production. The sector also generated significant employment opportunities, benefiting tens of thousands directly and indirectly.

However, FCIK expressed concern over the sharp decline in local poultry production, which has dropped by nearly 300%. Currently, the industry meets only 25% of local demand, with thousands of workers losing their jobs due to this downturn.

The Chamber attributed the decline to unfavorable policy changes following the reorganization of the state, which disproportionately benefited external suppliers at the expense of local farmers.

Previously, under the government policy aimed at boosting local production, a tax of ₹9 per kilogram of imported chicken was levied at the Lakhanpur checkpoint. This tax not only generated revenue but also created a level playing field for local farmers.

“The withdrawal of toll and abolition of the Lakhanpur toll post in 2020 has severely impacted the local poultry industry, causing production to plummet by 300%, now meeting just 25% of local demand,” the FCIK noted with concern.

The Chamber cautioned about the adverse effects of unrestricted imports of live and dressed chicken which not only undermine local producers but also raise concerns over the quality and hygiene of unchecked chicken meat supplied to local hotels and restaurants.

A delegation from the Kashmir Valley Poultry Farmers Association (KVPFA), led by President Ghulam Mohammad Bhat, recently met with the FCIK Advisory Committee to discuss the dire state of the industry.

Bhat noted that following the removal of the toll on imported chicken, the government failed to introduce alternative support measures, leaving local farmers to grapple with their inability to compete with their counterparts from relatively advantageous locations.

The KVPFA also emphasized the critical issue of inadequate credit flow to the poultry sector and the high interest rates imposed by banks.

Bhat highlighted that poultry farmers are often denied access to collateral-free loans under government-approved schemes, forcing them to mortgage personal assets, including homes, to secure financing.

“Despite poultry farming being categorized under agriculture, banks impose interest rates similar to those for other industries, which are 4-5% higher than typical agricultural loan rates,” he added.

Acknowledging the miserable conditions faced by Poultry industry, FCIK President Shahid Kamili has assured the delegation to raise their concerns with the government.

The chamber will suggest formation of a specialized committee to assess the sharp decline in poultry production and job losses across the sector, and to recommend measures for its revival.

Besides, the committee should also review credit flow and bank interest rates to support the industry,” Kamili stated.