Meat consumers in Bengaluru and other city centres across Karnataka are feeling a huge “pocket pinch” this week. It's a sudden and drastic spike in price for chicken, at levels not seen before, and one that places an unprecedented strain on household budgets and restaurant owners’ pockets. In many local markets, market prices for skinless chicken as at Saturday, Jan 24 have risen above the ₹340 to ₹350 per kg mark. Such a leap from December where the same quantity was easily available for ₹260 to ₹280.
The Supply Chain Crisis Protests and Production gaps
This sudden spike in demand is not localized in Karnataka but rather occurs in neighbouring states. Tamil Nadu and Andhra Pradesh the major poultry hubs responsible for an enormous share of Karnataka’s demand are grappling with industrial agitation. Protests are taking place against major poultry integrators and companies within these states. They are also pushing for increased care and rising fees, citing the increases in labor, electricity and bird feed costs.
Production slump
Along with the protests, there's been a clear dip in total poultry production. Many small-scale farmers are pulling back and downsizing their flock sizes, experts say, because of seasonal differences and expensive inputs that match their growing need.
Market Predictions: Will it hit ₹400?
Local traders and meat vendors in the crowded markets like Russell Market and K.R. Puram in Bengaluru are pessimistic about a price drop in the short term. With supply from outside the state still being smothered, many estimate the retail price would hover around ₹370 to ₹380 per kg by the close of next week.
The inflow of birds has dropped by nearly 30-40 percent,” says a wholesaler in Shivajinagar. “If the protests in Tamil Nadu do not end soon, we stand to see prices hit the ₹400 mark for the first time in recent memory.” The Ripple Effect on the Food Industry. The hike has not confined itself to the raw meat sector.
The hospitality sector is already feeling the heat
Restaurant Prices Small and mid-sized nonveg hotels are thinking of an inflationary price revision. Highly popular dishes like Chicken Biryani, Kebabs and Chicken Curry would almost certainly witness higher prices of ₹20-50 per plate to cope with the price of raw material.
Household Changes
Many middle-class families are also reportedly shifting their weekend menu toward eggs or fish however, fish prices too are being marginally pushed up, as demand diverted elsewhere.
Interstate Dependency
The current crisis sheds light on Karnataka’s dependence on the interstate poultry trade. Karnataka has a growing poultry sector, but with Bengaluru mega-city, the volume demanded is so high that imports from across the border are always an option to ensure the production runs smoothly.
Disruption in the "Poultry Belt" of Namakkal (Tamil Nadu) or Chittoor (Andhra Pradesh) translates directly into price hike for the common man in Bengaluru. For now, chicken is still on a more luxe menu, with residents watching the market closely, hoping for a peaceful resolution to protests by the interstate farmers.
