Aug 4, 2015

New import norms on the anvil for US chicken legs

Food safety body may ban import of chickens older than six months and those fed with GM feed
MUMBAI, AUGUST 2: 
The Indian consumers’ liking for chicken leg piece may ruffle a few feathers in the poultry industry with the Centre looking to frame import norms that would allow chicken imports from the US.
The fear of cheaper US chicken leg pieces flooding the market and use of genetically modified feeds such as corn and soyabean are major concerns for Indian industry. Genetically modified crops are banned in India.
There is not much demand for leg pieces in the US and it does not find a market despite being sold at deep discount. While the chicken is sold at $6 a piece, there are not many takers for the legs even at less than $1 (₹63). In India, chicken legs cost about ₹250 ($3.9) a kg.
The demand for chicken legs in the US is so weak that it is left with stockpiles of 3-4 years, particularly after most Asian countries restricted chicken imports from the US. Incidentally, India last month lost an appeal at World Trade Organisation against ban on chicken imports from the US.
The Food Safety and Standards Authority of India is, therefore, setting new import norms which may kick in within six months. It may include ban on import of American chickens older than six months and those fed with genetically modified feed. “We can compete with the US if it exports the entire chicken. The concern is only if it tries to push the legs which are not in great demand there. While the cost of imported chicken would be $4 a piece, the legs can land at $1 or even less,” said Babanrao Shinde, a poultry farmer.
Large scale imports from the US will bring the unorganised poultry industry to its knees as they already face many challenges such as high feed prices and falling realisations, said an official of a poultry company and added that the frequent outbreak of bird flu and subsequent fall in demand is also a drag.

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