Prices up on short supply

Prices of farmed chicken have shot up at the city markets, thanks to reduced production and disruption in supply from distant regions caused by the ongoing blockade and shutdowns.

Each kilogramme of broiler chicken was sold at Tk 165 yesterday at Hatirpool kitchen market, Tk 160 at Palashi and Tk 155 at Karwan Bazar.

Overall, prices of the farmed chicken rose by 17.65 percent to Tk 140-160 per kilogram from Tk 120-135 a month ago, according to retail price data by the state-run Trading Corporation of Bangladesh.

"Supply has reduced because many farmers are staying away from farming after incurring loss for very low prices of broiler chicken in December and early this year,” said Abul Hossain Patwari, a wholesaler at Kaptan Bazar, one of the main wholesale depots in the capital.

Disruption in supply from remote districts and increased transport costs were other factors behind the spiralling prices, he added.

Khandaker Mohsin, general secretary of Bangladesh Poultry Farm Protection National Council, said many small farmers suffered huge loss for slumping prices since the beginning of the blockade on January 6.

Farmers had to sell their produce as low as at Tk 90 per kilogram, which is lower than the production cost, in the wake of disruption in supply chain for the blockade, he informed.

"As a result, they cut the number of birds for rearing in the next production cycle. What we see now is the effect of that move. Consumers are bearing the brunt of higher prices for reduced farming," said Mohsin of the Council that represents more than 8,000 poultry farmers.

Reduced production of one-day-old chicks (DOC) and consequent price spirals have also affected the farming, according to industry stakeholders.

Breeders had reduced production of chicks as they suffered loss for failing to transport DOCs amid risk of arson and bomb attacks since the beginning of the political unrest, said the stakeholders.

Weekly production of broiler DOCs had declined to nearly 90 lakh from 1 crore per week early January, said Kazi Jashim Uddin, business director of Sunny Group of Industries, which trades in poultry and feed segments.

As a result, prices of DOCs had increased and thereby affected farming, he added.

Jashim also linked the price spiral to seasonal spike in demand. During this period of the year, social ceremonies such as wedding increased, leading to a rise in demand for chicken, he observed.

Saidur Rahman Babu, general secretary of Breeders Association of Bangladesh, has however claimed production has not declined.

He blamed disruption in supply chain for the spike in prices in Dhaka city.

"Political unrest is the prime factor. Many vehicles carrying live birds came under arson attacks near Dhaka in recent times. As a result, drivers are reluctant to transport birds. It has affected normal movement of poultry from one place to another," he said.

"Price is lower in many places although it is higher in Dhaka. Political unrest is the prime factor," he said.

However, increased prices of chicken had allowed farmers to get prices higher than their production cost now, said Mohsin.

"Farming has increased in recent days due to higher prices of chicken, said Mohsin, expecting that broiler chicken prices would decline in one and a half months.

Khokon Mia, a broiler chicken wholesaler at Kaptan Bazar, echoed the same.