India wants to keep US chicken legs out

The author has posted comments on this articleTNN | Jan 28, 2015, 05.19AM IST

India had banned poultry imports several years ago, citing avian influenza, but the WTO accepted the US challenge and termed the restrictions imposed as "unscientific". India is not the only country to have imposed such checks. 

NEW DELHI: India has challenged a World Trade Organization (WTO) ruling, asking it to lift a ban on the import of poultry from the US, a move aimed at helping check shipment of low-cost chicken legs, which are discarded in America as they are perceived as having higher cholesterol levels.

Although a decision on filing an appeal had been taken by the commerce department earlier, the actual plea was delayed due to legal vetting and news about it trickled out only after US president Barack Obama left for Saudi Arabia on Tuesday.

India had banned poultry imports several years ago, citing avian influenza, but the WTO accepted the US challenge and termed the restrictions imposed as "unscientific". India is not the only country to have imposed such checks. Even China had levied duties, and was asked to remove them by WTO as they were seen to be unfair.

Unlike India, where "tangri kebabs" are a hot favourite, in US, consumers prefer "white meat" and opt for chicken breast. As a result, there are surplus chicken legs and thighs for American companies to export to countries such as China, Mexico and Russia, where buyers are less fussy. In India, of course, everyone at the dinner table searches for leg piece in curry, which is often elusive.

As a result, not only there is a higher demand for leg pieces in India but even costs are lower if they are imported from the US. Government estimates suggest that despite 100% import duty, leg pieces from US will cost around Rs 100 a kg in the retail market. However, in cities such as Delhi, chicken produced at domestic market sells for at least Rs 160-170 a kg, while drumsticks and leg pieces cost close to Rs 250 a kg.

As demand for protein rises with increasing income levels, meat prices are expected to rise further and the domestic poultry industry is citing livelihood concerns to press the government for action. Although the government sees merit in challenging the WTO ruling, it is not averse to other steps to check import of chicken legs.

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