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Thursday, October 04, 2001 

Venkateshwara Hatcheries to set up retail chain

Our Bureau

Pune, Oct 3: In a bid to regulate prices of broiler chicken and break the stranglehold of traders over the business, the Venkateshwara Hatcheries Group is spearheading a big retail push in Maharashtra and Andhra Pradesh. The Group will on its own set up a chain of 20 retail outlets in Pune and 10 in Hyderabad as part of this initiative. In addition, poultry farmers themselves will be getting together to set up 50 outlets in Andhra Pradesh.

Turkey pricing raises eyebrows
First it was chicken legs from the US, now its is turkey from France that is threatening to displace fresh Indian chicken. But then this time the turkey is suspect, says Venkateshwara Hatcheries chairperson, Anuradha Desai.
A consignment of turkey, imported by Darshan Foods of Delhi, has arrived at the Mumbai Port. Ms Desai said, while turkey is worth around Rs 500 to 600 per kg in the international market, this turkey is slated to be sold at around Rs 60 in the Indian retail market inclusive of freight and a 35 per cent duty. “It is a mystery how this pricing has been achieved and makes this consignment suspect,” Ms Desai said.
Processed chicken attracts 100 per cent duty. “We have raised the issue with the agriculture ministry and want it to look into the matter,” Ms Desai said.
Last time, intervention from Sharad Pawar had stalled the entry of chicken legs. On testing, those chicken legs was found to be of inferior quality and the consignment returned, Ms Desai said.

This project is similar to the National Egg Coordination Committee, which standardised egg prices. Ms Anuradha Desai, chairperson of the VH Group said the poultry farmers were hit by low level farmgate prices, while traders were piling up 100 to 200 per cent margins in the wholesale and retail segment. “The farmer’s survival is at stake and this move will help them in getting better prices, while consumers too will benefit by getting chicken at almost 35 to 40 per cent lower than the existing cost,” Ms Desai said. The drop in prices will come into effect from November 2001.

Ms Desai said these Bromark outlets will prominently display the day’s price which will also be advertised on a daily basis in local newspapers.

Initially the retail outlet will come up in Pune, Mumbai and Nasik after which it is hoped that poultry farmers across the country would take up similar initiatives.

Rates are likely to be under pressure and Ms Desai expects stiff resistance from the traders to this move but said the industry had no option as their survival was at stake.

 
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