SRINAGAR: Key Kashmir industry body, the Federation of Chambers of Industries Kashmir (FCIK) has called upon the Jammu and Kashmir government to enact sweeping policy reforms to rejuvenate the local poultry industry. In a comprehensive proposal, FCIK suggested the formation of a specialised committee, in collaboration with industry stakeholders, to examine the challenges facing poultry farming in the region and to recommend effective solutions.
The FCIK noted that the poultry industry had once flourished under the first administration of Omar Abdullah, meeting around 85 per cent of local demand through domestic production. This period also saw the sector creating substantial employment, benefiting thousands both directly and indirectly. However, FCIK raised alarm over a drastic decline in local production, which has plummeted by nearly 300 per cent. Today, domestic producers supply only 25 per cent of the region’s poultry needs, leaving thousands of workers unemployed.
According to the FCIK, the downturn is a result of unfavourable policy shifts introduced after Jammu and Kashmir’s reorganisation, which have disproportionately benefited external suppliers. Previously, a tax of nine rupees per kilogram on imported poultry was imposed at the Lakhanpur checkpoint, effectively creating a level playing field for local farmers while generating revenue. However, the abolition of the toll post in 2020 removed this protective measure, allowing unchecked imports to flood the market.
“The withdrawal of the toll has severely impacted the local poultry industry, causing production to plummet by 300 per cent, now meeting just 25 per cent of local demand,” the FCIK stated. The Chamber also raised concerns over the quality and hygiene of imported poultry, warning that unrestricted imports of live and dressed chicken could compromise local standards and potentially expose consumers to health risks.
A recent meeting between the FCIK Advisory Committee and the Kashmir Valley Poultry Farmers Association (KVPFA), led by President Ghulam Mohammad Bhat, highlighted the industry’s dire straits. Bhat stated that after the toll on imported chicken was removed, the government failed to implement alternative support mechanisms, placing local farmers at a severe disadvantage compared to suppliers from more favourable regions.
Among the key issues raised was the difficulty in accessing affordable credit. The KVPFA noted that banks impose high interest rates on poultry loans, treating them similarly to industrial loans rather than agricultural loans. This has left farmers struggling with rates that are 4–5 per cent higher than typical agricultural loans, despite poultry farming being classified under agriculture. Farmers also report being denied access to collateral-free loans under government schemes, often forcing them to mortgage personal assets, including their homes, to secure funding.
FCIK President Shahid Kamili, recognising the “miserable conditions” facing the poultry industry, assured the delegation that FCIK would advocate for a policy review. Kamili expressed support for a specialised committee to evaluate the decline in local production, job losses, and the credit barriers faced by the industry. “The committee should review credit flow and bank interest rates to support the industry,” Kamili said.
The FCIK’s proposals include reintroducing protective measures against imports, restructuring credit policies for poultry farmers, and introducing collateral-free loans at agricultural interest rates. The Chamber hopes these changes will restore the poultry industry’s competitiveness and help it meet local demand once again, fostering sustainable economic growth and job creation in the region.
