PPA demands to remove Price Capping on Chicken Meat
Vice Chairman PPA (Northern Region) Malik Muhammad Sharif has demanded that the Punjab Government remove poultry price capping on chicken meat rates. Poultry prices should be determined based on supply and demand under market forces. Government interference in the prices of poultry products is harmful to the industry. If the poultry price capping on chicken meat is not removed, there is a risk of further closure of poultry farms. This situation will to the risk of extinction of chicken meat. Pakistan Poultry Association has demanded.
How Poultry Prices Mechanism Works
He said that the prices of chicken meat and eggs are determined according to the basic principles of supply and demand. However, different seasons also affect the supply and demand of chicken eggs and meat, due to which there is a difference in prices. Further, factors like various festivals, disease pressure, load shedding, and fluctuations in the prices of various commodities also affect the prices of poultry products. The prices of poultry products are self-regulated by these factors which are neither under the control of poultry farmers nor of the public sectors.
Effects of Poultry Price Capping on the Poultry Sector
He said that the increase in prices of poultry products is due to limited supply or high demand. Any intervention by the public sector to deal with the situation of high prices of poultry products proves to be harmful. Intervention by government circles plays a negative role, as a result, the poultry farmer has to bear huge losses and is forced to close his business.
He said that the Government of Punjab has illegally interfered in the rate mechanism of broiler chicken and has capped (fixed) the rate of chicken meat at Rs 600. This is the upper price and no lower price has been fixed. That is, the government does not care about the loss incurred by the poultry farmer. Since poultry meat is a perishable item, it can be kept on the farm for a maximum of 4 to 5 days and has to be marketed in any case. At present, a poultry farmer is incurring a loss of 55-60 lakhs on a shed and cannot afford to continue incurring losses. As a result, the farmer will be forced to close his business.
He demanded that the poultry prices products be decapped. This will be a good move for all stakeholders including consumers and farmers.
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