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G. Gurumurthy

Earlier, the poultry processors sought a Rs 13 per kg subsidy. But had reworked the subsidy element as it was not agreeable to the Govt and have now sounded a subsidy band in the range of Rs 5-7 per kg.

COIMBATORE, Dec. 16

THE country's leading poultry processing houses are waiting to get the promised transport or the freight subsidy for the processed chicken exports.

But as of now, it appears that it will be a long wait before these exporters could actually get the subsidy from the Union Ministry of Agriculture and Food Processing.

This is because the much publicised transport subsidy for poultry exports announced in the last Exim policy is yet to get any allocation from the Finance Ministry to entertain any claims in this regard from the poultry processors.

The non-allocation of funds, according to reliable sources in the poultry sector, has restricted the Agricultural and Processed Food Products Export Development Authority (Apeda), the designated nodal agency to process requests for export incentives, from proceeding any further this year. Sources say Apeda would now be able to file its requisition for the fund allocation only in the 2003-04 Budget allocation.

Notwithstanding the uncertainty in the budgetary backup this year, domestic poultry majors are urging Apeda to take up the issue with the Centre for expeditious clearance of the subsidy.

But the issue that is really engaging most poultry exporters is the rate of the subsidy that will finally be permitted once the Government's clearance is obtained for freight subsidy allocation.

According to the sources, the major poultry producers were earlier pleading for a freight subsidy of Rs 13 a kg of exports with Apeda and the Union Government but this claim failed to convince the latter who were said be looking at this rate as unviable.

This forced the parties concerned to rework the subsidy element and the processors had sounded a subsidy band in the range of Rs 5-7 per kg.

At least two of the major poultry operators, the Pune-based Venkateswara Hatcheries and the Coimbatore-based Suguna Poultry group are said to be intensively campaigning with the Government to get the poultry export subsidy released for processed chicken exports.

In fact, the Suguna Poultry group has been pleading with the Government to fix the rate at Rs 6 a kg for its frozen chicken exports.

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