Urgent reforms in Poultry Industry

Context:

In light of the public health crisis brought by the current outbreak of H5N1 and the climate emergency, it is crucial for addressing the challenges in the poultry industry and bringing about necessary reforms, so as to cater to the One Health Principle.

The poultry industry in India: 

• Poultry refers to domesticated birds raised for various purposes, primarily for their meat and eggs. 
  • Some common types of poultry include chickens, turkeys, ducks, geese, and quails. It is one of the fastest-growing agricultural sub-sectors.
• India is currently the world’s third-largest producer of poultry meat and eggs, with an annual production of over 4.78 million tons of chicken and 129.6 billion eggs. 
  • The total poultry feed production in the country stands at 27M MT/year in 2022. 
• Growth Rate: The poultry meat sector in India has been growing at an annual average growth rate of 8%, with egg production increasing by 7.45 % between 2014-15 to 2021-22.
  • The India poultry market size reached INR 2,099.2 Billion in 2023, exhibiting a growth rate (CAGR) of 8.9% during 2024-2032.
• Top 5 egg producing States: Andhra Pradesh (20.13%), Tamil Nadu (15.58%), Telangana (12.77%), West Bengal (9.93%) and Karnataka (6.51%).

Challenges with regard to the poultry Industry:

• Contaminated environments: They are a result of cramming chickens in battery cages in high densities in unsanitary conditions resulting in air quality and waste problem due to the odour, particulate matter, and other greenhouse gas emissions.
  • The Central Pollution Control Board (CPCB) has classified poultry units with more than 5,000 birds as a polluting industry requiring  compliance and regulatory consent to establish and operate.
• Cruel Treatment: The operational activities at these industrial facilities cause unnecessary pain and suffering to the animals because of mutilation, starvation, thirst, overcrowding, and other ill-treatment.
  • Keeping animals in intensive confinement constitutes a crime under the provisions of the Prevention of Cruelty to Animals (PCA) Act, 1960.
• Industrial Constraints: The Poultry Industry is subject to large debts, informal facilities, contract farming, requires a very specialized skill set resulting in  farmers finding themselves in huge losses and unable to exit the market.  The farmers suffer due to market volatility and the prevalent practices pushed by industry giants.
• Use of Antibiotics: They  are regularly given to birds as a prophylactic and growth promoters to maximize production and profit. 
  • Antibiotics for preventative use: Antibiotics classified as critically important by the WHO are also widely sold to farmers and is prescribed to day-old chicks to reduce the likelihood of disease and mortality.
• Unsanitary conditions: The unsafe and unhygienic conditions in which the farms operate have a detrimental effect on the health of animals and the welfare of the consumers too. 
  • The workers at these facilities and the people residing in the vicinity are also unduly impacted.
• Waste generated: Poultry Industry generates waste in the form of emissions in the atmosphere (methane and CO2), effluents in the water systems, and solid wastes in the soil.  
• Inefficient Waste Disposal Mechanism: The amount of piled-up manure (feacal matter collected periodically by local farmers for use as fertilizer) exceeds the carrying capacity of the land and becomes a pollutant.
• Breeding ground for disease: The piles of waste becomes a breeding ground for disease vectors such as flies and mosquitoes which spread in the nearby areas spreading diseases. Residents are compelled to adopt measures such as spraying insecticides inside homes, leading to breathlessness and a nauseating smell.

Key Government Initiatives:

• Mega Food Park Scheme: 42 mega food parks (35 approved) are being put up by Ministry of Food Processing Industries with around 1,200 developed plots (of approximately 1 acre each) with basic infrastructure, that entrepreneurs can lease for the setting up of food processing and ancillary units.
• Infrastructure Development: Scheme for Cold Chain, Value addition and Preservation Infrastructure and  setting up/modernization of abattoirs (for Government abattoirs)
• Entrepreneurship Development and Employment Generation (EDEG)- Poultry Venture Capital Fund under the National Livestock Mission to improve production of poultry and productivity of processing units through technology upgradation.
• Assistance to States for Control of Animal Diseases (ASCAD):  It will have activities for vaccination against economically important diseases of livestock and backyard poultry duly prioritized by the State/UT as per the disease prevalence and losses to the farmers.
• Fiscal Initiatives: 
  • 100% FDI permitted through automatic route in food processing sector.
  • 100% income tax exemption available to new food processing, preservation and packaging units for the first 5 years of operation, and at the rate of 25%-30% thereafter.

Opportunities in Poultry Sector: 

• Technology upgradation: Farm Automation, modernisation of abattoirs, improved logistics channel, processing and point of sale cold storage infrastructure are the upcoming opportunities  given the changing preference of Indian consumers for clean, safe and hygienic meat.
• New products: value added products like frozen/chilled poducts, RTC/RTE, Indian ethnic products/snacks, Egg powder plants etc.
• New feed formulations and manufacturing
• Hatcheries
• New veterinary technology/services
• Food testing labs

Path to Reform:

• To meet The 269th Law Commission of India Report 2017 Guidelines: It laid down certain guidelines as per existing laws and international best practices for animal care, waste management, and antibiotic use, among others.
  • It contained evidence that non-therapeutic antibiotics given to poultry cause antibiotic resistance since living conditions are unhygienic.
  • It further said that with more open, cleaner, and ventilated living spaces, animals are less likely to need constant antibiotics, making their eggs and meat safer for consumption. 
• Environmental Regulations: Strict oversight for compliance and enforcement of environmental regulations is necessary given the CPCB’s reclassification of the poultry industry as a highly polluting ‘orange category’ industry.
• Focus on One Health & Nutrition: Consumer awareness of the nutritional benefits of poultry products  and also its antibiotic-free status needs to be heightened to secure responsibly sourced, high-quality protein. 
• Emphasis on Biosecurity & Feed Hygiene: Biosecurity measures and feed hygiene play a pivotal role in preventing diseases, ensuring optimal growth, and ultimately safeguarding the sustainability of the poultry industry.
• Feed Milling & Quality of Feed: The poultry industry increasingly recognizes the importance of pellet durability, optimizing throughput, minimizing energy consumption, good steam quality, proper water activity, and moisture optimization processes to improve feed quality.