Poultry industry has appealed to the government to abolish 5% GST on frozen chicken and to reduce from 12% to 5% GST on value added poultry products – The Indian poultry industry has been witnessing a sustained growth rate of around 8% in the last decade as the industry has been able to provide nutritional requirements of a large mass of people at an affordable cost.
The poultry industry also helps maize and soybean (meal is the by-product used in the feed) farmers in getting remunerative prices because of rising demand of animal feed over the years. Over 92% of the poultry meat output in the country is sold through wet or live bird markets, while the rest of the meat production is sold as processed products.
The processing in the poultry meat industry is growing significantly over the years. As an industry which employs lakhs of small holder farmers and growing at steady pace, there is 5% Goods and Services Tax (GST) on frozen chicken and in additional 12% GST on processed and specialty products such as marinated and value-added frozen chicken. These products consumed by a large mass of people are also critical aspects to promote modern, hygienic food practices, reducing dependence on unsafe handling and offering consumer safe, ready to cook protein choices.
These valued added chicken products are no luxury items thus the poultry industry has requested the Honorable Finance Minister, Mrs. Nirmala Sitharaman to abolish the GST on frozen chicken, while reducing the GST on value added chicken products to 5%. Waiver and reduction of GST on these poultry products will expand access of masses to safe chicken products while supporting poultry farmers through higher consumption and thus demand of poultry meat products.
