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Sri Lanka to import chicken after slapping twin controls on poultry farmers

June 27, 2010 (LBO) - A state agency will import chicken to Sri Lanka a media report said, after government price controls created 'shortages' and production costs were pushed up by a policy to keep maize prices high.
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The Island newspaper quoted D D Wanasinghe, who heads a poultry farmer association as saying that production was now coming back on stream.

"Importing chicken at this juncture will be disastrous as a glut is anticipated by early August with the industry stepping up production to meet the shortage", the newspaper quoted Wanasinghe as saying.

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Analysts say permanently liberalizing imports can be a good policy, if inputs are also freed from taxes, as it will eventually make the entire sector more competitive.

Unlike the rice farming where the government gave a production subsidy in the form of rock bottom fertilizer subsidy, poultry farmer have seen their production cost pushed up by import duties on maize, which is the main import feed.

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Unlike rice farmers, poultry farmers have little political clout, and have had to face discriminatory treatment from the state.

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Maize prices were pushed up through import duties to 'protect' farmers when a commodity boom collapsed in late 2008.

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