Poultry cartel hits smallholders
By Gamini WARUSHAMANA
A cartel of large scale poultry producers is emerging while
smallholders who account over 40 percent of the poultry industry are
struggling to survive due to the sharp increase in cost of production,
the, All Island poultry Farmers Association said.
The Chairman of the association, Dr.D.D.Wanasinghe said that
policymakers have ignored the voice of the small scale poultry farmer,
who is represented by the Association, when policy decisions were taken
in the recent past.
Only a few large scale poultry producers have been consulted to seek
the views of the industry when formulating budget proposals and as a
result important issues relating to the industry have been ignored, he
said.
The poultry industry is suffering due to increased maize prices as a
result of insufficient domestic production and import control. Today
maize prices have increased to Rs.49/ Kg while 52 percent tariff is
imposed on maize imports.
As a result the cost of poultry feed has increased sharply and the
cost of production is higher and the profit margin is not attractive as
there is a price sealing of Rs.350/kg for chicken. Only four large scale
poultry producers attended pre budget discussions with Treasury
officials and they have not pointed out the issues faced by small scale
poultry farmers.
They have obtained a two-year tax exemption for import of closed
house equipment, accessories, spare parts, freezer trucks and cold rooms
which are used by them.
These are important for the development of the industry as a whole
but not relevant to smallholders. The burning issues faced by small
holders are different and if policy makers ignore their issues it would
ruin the small poultry farm sector creating a cartel of large producers,
he said. Dr.Wanasinghe said that last November at a discussion with
Treasury officials, it was agreed to waive off import duties for maize
for limited amounts, to bridge the supply gap. However, it was not
implemented. Policy decisions should be taken for the benefits of maize
and poultry farmers, because both industries are interdependent, he
said.
|