Poultry units’ power tariff hike to put egg-stra load on pocket

HYDERABAD: Telangana power utilities may have spared the domestic consumer of any tariff hike, but have provided a shock for non-vegetarians and egg lovers by effecting a hike in the power tariff rates for poultry industry.

With the

Telangana State Electricity Regulatory Commission

(TSERC) approving a hike in tariff, prices of chicken and egg are slated to increase by about 10% from April 1, the day the new tarrif comes into effect.

Telangana Transco

has increased the price per unit of electricity for all poultry farms from Rs 4 per unit to Rs 6. Telangana happens to be one of the major egg producers in the country and a hike in power charges will negatively impact the poultry industry.

Ironically, egg prices have already touched a record high of Rs 5 per unit, which is the highest ever recorded in Hyderabad. Andhra Pradesh and Telangana account for over 35% of egg production in India. Hyderabad, being the major hub of egg market, determines the benchmark price across the country. This is so because most large poultry farmers located around Hyderabad bring their daily produce to egg wholesalers in the city. During the last few days, poultry farmers in and around Hyderabad have been selling eggs to wholesalers at rates upwards of Rs 4.90 to Rs 5 per unit. That’s almost Re 1 more than what it was two months ago. Similarly, the price of chicken, which was hovering around Rs 135-150 per kg two months ago, has touched Rs 150 per kg now.

The tariff hike approved by TSERC is all set to burden the poultry industry which is struggling to be competitive against rising prices of feed cost. Production cost of eggs and chicken is directly proportional to the feed cost. Egg-laying chicken are fed maize, corn, broken rice, groundnut cakes, jowar, bajra and soya to augment yields. As a result, when grain prices increase, egg production costs rise in tandem. At the same time, power charges also impact the overall production cost of the poultry industry.

“The letter of Telangana government regarding subsidy commitment is silent on the release of additional subsidy of Rs 32.71 crore for retaining the existing concession of Rs. 2 per unit for poultry farms would be provided or not.

If GoTS intends to extend the concession of Rs 2 per unit to poultry farms, the same may be directly provided to the distribution licensees,” said TSERC in its order.

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