Poultry prices across the country has dropped by around 25%-30% in the last one month following a fresh outbreak of bird flu, this time in northeastern state of Assam. Officials said that exports could also be hit as many countries have put poultry imports from India under the ?watch-list?, although no one has yet officially banned imports. The latest outbreak, which had its epicentre in the Kamrup district in Assam, came barely days after India regained its ?bird flu free? status from the World Organisation for Animal Health (OIE), almost eight months after it was struck by the worst case of bird flu in West Bengal.

The disease has now again spread to West Bengal, putting the more-than Rs 40,000-crore poultry sector into turmoil during the peak demand season of Christmas and New Year. Poultry industry sources said that although traces of virus have been found in the northeastern parts of the country, it has set off a panic sale amongst poultry farmers, which has led to decline in the broiler prices in range of 25% – 30% across the country in the past one month.

?There is some panic selling among poultry farmers and traders are also taking advantage of the situation by forcing farmers to sale broilers at lower rates,? Ricky Thaper, treasurer, Poultry Federation of India (PFI), told FE. According to thje PFI, the live weight of each kg of broiler in New Delhi and the adjoining areas has declined from Rs 55-Rs 60 in November, to Rs 42 at present.

Industry sources said that due to a good soybean crop this year, poultry feed prices are down to Rs. 14000 per tonne. Poultry feed comprises of around 70% of the total cost of producing of eggs and chicken. Although Indian exports of poultry products is not significant in comparison to the size of domestic market, the bird flu outbreak has adversely affected the country?s exports to traditional overseas markets like the Middle East and Afghanistan.

According to an official from the Agricultural and Processed Food Products Export Development Authority (APEDA), countries like Muscat, the UAE and others have put imports of poultry products from India on their watchlists. India?s export of poultry products has increased from Rs 287 crore during 2004-05 to Rs 350 crore during 2007-08. The major markets for Indian poultry-products exports are the UAE, Kuwait, Oman, Germany and Japan.

India produces more than 2.0 million tonne of broiler chicken annually and is the fifth largest producer in the world. The country is also the largest producer of eggs with a production of around 44 billion pieces.