Government plans to challenge WTO order on US poultry

NEW DELHI: India plans to challenge a World Trade Organisation (WTO) order that told New Delhi to remove curbs on poultry imports from the US, saying it's important to protect the industry that supports livelihood of millions of people in the country. India had banned poultry imports on account of avian influenza, which WTO called `unscientific'. “We are filing an appeal very soon to the appellate body. We may get improvement in the panel decision itself, which will help us in future,“ a commerce department official told ET.

“We are, no doubt, committed to protect the industry in a WTO compliant way,“ the official said, adding that the poultry sector is growing in many states and has huge employment potential.

Fearing loss of business, local poultry players have been pressing the government to take steps to ensure that the US doesn't dump chicken legs, an item that they say Americans usually discard, in the Indian market.

Currently, fresh chicken in retail was selling for Rs 180 a kg and chicken legs for Rs 240 a kg. On the other hand, chicken drumsticks from US come in at around Rs 50-60 a kg.

GB Sundararajan, managing director of Suguna Poultry Farms, said the industry was working to provide international quality product at affordable rates. On the likely threat from the US, he said, “We are adopting wait-and-watch policy. The outcome to the issue can take six months to two years.“

India is the fourth-largest producer of chicken in the world after the US, China and Brazil, with annual production of 3.5-4 million tonne. Per-capita consumption of chicken in India has been on the rise, with eating habits changing predominantly in the metro cities, driving demand for fresh meat and meat products.

Organised players such as Godrej Tyson, Suguna Foods, Venkateshwara Hatcheries and Alchemist have been expanding their retail base and increasing capacities.