Indian dam row effects poultry prices in the region

22-12-2011 | | |

The controversy over the Mullaperiyar dam in India between Tamil Nadu and Kerala has had a knock on effect on the local poultry market.

Chicken and egg prices, which normally drop during the Sabarimala pilgrimage season, have shot up to Rs 80 per kg from Rs 55-60 per kg because of the trade disruption near the border between the two states.

Until recently, Kerala used to depend heavily on poultry products from its neighbouring state. The dam row has triggered a price rally with the obstruction of traffic at several border points. “Retail prices have jumped from Rs 55-60 per kg to Rs 82 per kg and could rise further,” said Basheer, a local chicken merchant. A few merchants are expecting the prices to touch Rs 100 per kg. The supply to Kerala happens basically through four routes: Coimbatore-Walayar, Cumbum-Kumily, Shenkottah-Kollam and Nagercoil-Thiruvananthapuram.

Of these, the Coimbatore-Walayar belt seems to be the least affected. Namakkal in Tamil Nadu is a chief market for eggs. “The trade through the other three borders has been hit. A part of the trade is being re-routed through the Coimbatore-Walayar border. Egg prices which were hovering below Rs 3 have touched Rs 3.20 per egg. A cold wave in North India has also contributed to this,” said Dr P Selvaraj, chairman of Namakkal National Egg Co-ordination Committee.

Coimbatore-based Suguna Poultry Farms, a leading player in the poultry business, is experiencing some difficulties in sending goods to Kerala. “We had reduced the supply to Kerala over the last few months as our products were fetching lower prices in the state. The dam row has partially affected the sales,” said Ravindran K, director of sales and marketing of Suguna Poultry.

Source: The Economic Times