Poultry farmers in Karimnagar are facing severe financial losses as a syndicate of traders continues to manipulate chicken prices, cutting deeply into the profits of those who rear poultry. While traders involved in the poultry industry are benefitting from selling chicken at higher market rates, farmers are struggling as they are forced to sell their poultry at prices far below the prevailing market rate.
For the past 20 days, the price of chicken has been consistently falling, leading to significant losses for poultry farmers who have already invested substantial amounts of money into their businesses. Venkob Chicken, one of the prominent suppliers in the region, has set the price of live chicken at Rs 101 per kg. However, farmers are being forced to sell their poultry to a syndicate of traders at a much lower price of Rs 95 per kg. In some instances, the price offered to farmers is further reduced by Rs 8-10, leaving them with just Rs 85 per bird.
This price disparity has raised alarm among farmers who point out that while they are being underpaid, chicken is being sold in the open market at prices ranging between Rs 200 and Rs 240 per kg. The traders, who act as intermediaries between the farmers and chicken centers, are pocketing a substantial profit of Rs 15-20 per kg, capitalizing on the farmers’ vulnerability and their dependence on the traders for selling their poultry.
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Farmers have been left wondering who gave these traders the authority to set prices in the market and reduce them further. On some Saturdays, individual traders have reportedly purchased between 30,000 to 40,000 poultry birds, highlighting their dominant control over the market. Allegedly, these traders are also involved in large-scale shady dealings worth crores of rupees, further deepening the exploitation of farmers.
Adding to the pressure, farmers who question the low prices are said to face threats of being blacklisted, meaning no other traders or buyers would purchase from them. This has created a climate of fear and intimidation, with farmers feeling trapped in the clutches of the syndicate. In the undivided Karimnagar district alone, 80 traders are overseeing the poultry operations of around 50 lakh birds. Every week, farmers rear 3 lakh chicks, with some leasing their sheds to companies that also contribute to the exploitation.
The situation is made worse by the rising cost of poultry feed. A 50 kg bag of chicken feed, which was previously sold for Rs 1800, now costs Rs 2100 due to rising soya prices. Despite a drop in soya prices from Rs 45 to Rs 30 per kg, companies have not reduced the price of chicken feed, further increasing the financial burden on farmers.
In addition, companies that produce chicks have also formed their own syndicate, inflating the price of chicks to Rs 40-45 each, further squeezing the already struggling farmers. This collective market manipulation by traders, feed companies, and chick producers has left poultry farmers in a precarious financial situation.
The poultry farmers are now urging the authorities to intervene and regulate the practices of the traders and feed companies. With the current state of affairs, many farmers fear that if the situation continues, they will be forced out of business altogether. The government’s timely intervention could be the only hope for these farmers to recover their livelihoods and ensure fair pricing in the poultry market.
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