Mayur M. Vispute*,Ashwini R. Chaple, Mukesh T. Nampalle
PhD Scholar- ICAR-Indian Veterinary Research Institute, Izatnagar.
Introduction:
In December 2019, China alerted WHO about the rising cases of flu-like respiratory illness in Wuhan city, which was later confirmed to be caused by the novel coronavirus (SARS-Cov2) and subsequently named as COVID-19. However, the infection did not remain limited to China, but spread globally within a short time span owing tohigh infectivity of this virus and movement of people across the globe (187 countries). Therefore, declared as Pandemic by WHO in March, 2020. To check the community spread, the governing authorities of various countries opted for the countrywide lockdown posing restrictions travel, social and religious gatherings as well as almost all economic, educational and other non-essential activities. Albeit, lockdown played the pivotal role to counter the spread of disease, it however caused significant collateral damages owing to the restrictions on economic activities.On other front, besides creating public awareness, social media played equal part in spreading some rumours regarding the dynamics of COVID-19 in population.
Impact on Poultry Industry:
The possible role of eggs and chicken meat for spread of COVID-19 is one such example of rumours among many. This caused the drastic downfall in the demand for poultry products from February 2020, i.e. much before the announcement of lockdown, resulting in collapse of poultry economics due to erosion of working capital. From small farmers to big integrators, all the factors of poultry production hit badly, even worse than Avian influenza epidemic of 2006. These rumours were however counteracted and nullified by systematic efforts like awareness campaigns and initiatives like Chicken Mela by the state authorities and the industry.Till end of March, losses worth Rs. 22500 crores have already been occurred. Reduced demand has further resulted in depopulation and culling of existing poultry stocks by farmers.
As far as Indian Poultry market is concerned, about 95% of Indian poultry meat is marketed in wet market and only 5% is processed for chilling. Lack of processing facilities contributed in further downfall in its market. As of middle of May, 2020, demand for poultry products is steadily increasing, but still not as it was expected by experts. It has brought a difficult time for many poultry-dependant Agri-entrepreneurs such as maize and soybean producers as well. They foresee poultry feed industry as a guaranteed market for their produceas maize and soybean contributes to about 75-80% of the poultry feed.In such crisis, about 30 to 50% of the farmers won’t be able to survive unless given some financialsupport by state.
Strategies to be made for revival of poultry enterprises:
The revival strategies shall be a collective effort by both state as well as industry. Focused efforts are needed to develop the demand for poultry Products. Strategic interventions can be divided into policy support and industry decisions.
- Policy support:
- Continuous review of market by governing authorities to frame new and to improvise the existing strategies for poultry development in country.
- Government should convert the working capital loans to medium term loans to economic relief.
- Two years of grace period shall be given to poultry farmers for interest payment over the existing loans.
- Direct benefit of around 100 Rs per bird may be credited to farmers’ bank account as a working capital. Poultry industry is the processing industry of agriculture (Maize, soybean, rapeseed). Reviving Poultry business would also benefit agriculture ventures.
- Feed and feed ingredients like soybean meal (protein source) may be subsidised by around 30% to reduce the initial investment as protein sources add much cost to the feed.
- Import duty on maize can be reduced by 60% to keep the ration prices relatively stable in case of shortage, if any.
- Income of poultry business depends upon per capita consumption of meat and eggs. Therefore, public awareness may be created regarding importance of animal protein in diet. Compulsory incorporation of eggs in mid-day meal of school children in all states may increase the demand and stabilize the layer market.
- India have only 5% of export share of the total poultry market. Therefore, post-harvest technologies can be introduced to match the established international standards to maximize the exports.
- Backyard Poultry plays crucial role in rural economy. Creation of Poultry Development Board (PDB) as like NDDB (for dairy) to boost the rural poultry
- Measures to be taken by industry and farmers:
- The equation of demand and supply should be matched by continuous market studies by industry to keep the losses in check. In current scenario, it is suggested by experts to lower the production by about 40% to minimize further losses.
- On the similar ground as dairy, the interference of middlemen can be eliminated by creating the Farmer Producer Companies or Co-operatives for poultry and setting up new marketing channel to support farmers directly by reducing value chain length.
- Poultry processing technologies should be developed to meet the export standards. Supply chain of chilled meat should be established to avoid the losses due to surplus production. In Poland, farmers have formed a network of chilled meat supply and restricted the profits sharing with middlemen.
- Improving storage and processing facilities for eggs and meat would lessen the financial setback to farmers in case demand-supply equilibrium gets affected due to surplus production and relatively low demand.
- Existing Schemes:
- Government of Indian announced a relief package to give credit support to micro, small and medium enterprises (MSMEs). GOI would be a guarantor for such credits to entrepreneurs and farmers. This will definitely help these enterprises to regain the momentum.
- Small farmers can use the Kisan credit card to get the loan at marginal interest (2-3%). Depending upon capacity to repay, government can also increase the loan amount.
- National Cooperative Development Corporation (NCDC) also offers loan to poultry farmers with easy terms and conditions.
- Recently both NABARD and RBI has declared the relief in terms of loan repayments in the light of COVID-19 pandemic.
Conclusion:
COVID-19 has brought a huge setback to the poultry industry along with other collateral damages. In such crisis, collective efforts by both government and industry will play instrumental role to pull out the business from this setback with systematic and focused efforts to develop demand for poultry products. However, policy support by state to small farmers will help them gain their confidence back and would also augment the losses.The Poultry industry has a potential and will surely bounce back in time to come.
