Poultry imports from US to trigger price war in India

Indian poultry industry is hoping that it will be able to check US imports on the basis of other allegations faced by the US industry The Dollar Business Bureau

In June last year, WTO had ruled against India after the country denied imports of poultry and other products from the United States citing concerns about Avian Influenza (AI)

The Indian government seems to have been making all out efforts to protect domestic poultry sector from US imports ahead of the June-2016 deadline for removing restrictions on the entry of these products. India has already lost its case in the World Trade Organisation (WTO) against the US which contested Indian authority’s move to ban the entry of poultry items citing concern over avian influenza infection. The Dispute Settlement Board of WTO in June last year ruled in favour of the US. The US administration, however, agreed to give one year time to India for removing import curbs. As the deadline approaches, Indian poultry farmers are worried that the import of cheaper poultry items in the market could trigger a price war in the domestic markets. “Imported chicken pieces will lead to a reduction in the prices of the items up to 50%. This will eat out all our profit margin. The government must take some immediate measures to control the situation,” said a poultry farmer. Reports say that the Commerce Ministry is considering measures so as to address the concerns of the poultry farmers. The issue dates back to March 6, 2012 when the US requested consultations with India with respect to the ban amid concerns over avian influenza. The WTO in June had concluded that India’s measures amounting to an import curb was not based on the international standard or on a scientific risk assessment. “It’s a judgment by the apex trade body that has been taken after considering inputs from both the member countries involved in the dispute and there is nothing much to comment on this separately,” a CII official had told The Dollar Business. Now, the Indian poultry industry is hoping that it will be able to check US imports on the basis of other allegations faced by the US industry such as the violation of regulatory guidelines in freezing chicken legs for longer period. Indian poultry industry produces more than 40 million tonnes of chicken annually. Once the imported items start flowing in, Indian producers are expected to lose up to 40% of their domestic markets.

January 05, 2016 | 12:40pm IST

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The Dollar Business Bureau - Jan 05, 2016 09:08 IST

Poultry imports from US to trigger price war in India

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