Sri Lanka poultry industry recovering from state curbs, demand up

Sept 06, 2010 (LBO) - Sri Lanka's Bairaha Farms, a poultry breeder and processor says the industry is recovering and increasing production after state restrictions on the industry were relaxed but demand is also rising.

"Since the Government has been encouraging the local cultivation of maize it did not allow imports in spite of the 35 percent Cess even though there was a shortage of maize in the country during certain months of the year," the company said.

"However, there was a change of policy after the authorities realised that there was an acute shortage of maize in the country.

"A limited quantity of maize was then allowed to be imported under a special permit scheme.

"The current maize price is around Rs.

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34/- per kg but at one time it shot up to Rs. 51/- per kg during a few months in the year under review due to restricted imports as well as the high Cess on imported maize.

"

The economies of both India and Sri Lanka lagged behind the rest of the world due to what is now called the 'permit raj'. In the 1970's when Sri Lanka reached the height of its 'permit raj' unemployment hit over 20 percent.

Self service supermarkets in particular, which did not sell at 'blackmarket prices' were freq