Freight subsidy in Exim policy -- TN poultry farmers prepare blueprint for table eggs, meat export 


WITH the new Exim policy paving the way for allowing transport assistance to poultry, the Tamil Nadu-based poultry sector has initiated assessing country-specific export potential for table eggs and chicken meat from the State. 

Indications are that major integrated poultry farms capable of meeting the standards laid for poultry products export may soon write to the Agricultural and Processed Food Products Exports Development Authority (Apeda) seeking details on market-specific export potential for Indian poultry products, such as volume of off-take, pricing etc, poultry industry sources say. 

Hitherto under the Exim policy framework, freight subsidy offered by the Government covered only the export of hatching eggs and it does not as such cover exports of either table eggs or chicken meat. 

Even in the case of hatching egg exports, transportation subsidy given to the exporters has been limited to 25 per cent of the cost of freight (air freight) or Rs 6 per kg whichever is lower. In most instances, this is felt inadequate for the shippers who feel the actual cost of transportation remained staggering. 

Tamil Nadu poultry producers, especially the integrated broiler producers, view West Asia, Russia, Hong Kong and Japan as potential markets for Indian poultry products. The preliminary data on poultry market in these countries, according to Mr B. Soundararajan, President of the State Broiler Coordination Committee (BCC), indicate that about 2 million tonnes of poultry products are being imported in these countries with their per tonne value working out somewhere Rs 50,000. 

If Indian poultry sector could tap at least two lakh tonnes, it would be good business scope, he says. 

However, sources connected to the poultry industry feel that the freight subsidy is just one of the many factors that can encourage poultry products exports. 

A well-developed domestic market for processed egg/chicken meat will be a pre-requisite for promoting exports because no poultry farmer could set shop for just exports alone without having a local market for his produce. 

With India yet to develop a viable processed poultry market within the country, domestic poultry farmers have to go miles before they can optimise the use of freight subsidy scheme in poultry exports, the sources say.


Source: The Hindu Business Line