COIMBATORE: The Poultry Farmers Regulatory Committee (PERC) has refused to increase the rearing rate in response to the demands of chicken rearers who have been on strike across the state since January 1.
The Committee announced that increasing the rate up to Rs 20 per kilogram for poultry rearing is not possible.
Addressing press in Coimbatore city on Wednesday, the Committee members said 90% of broiler rearing farmers receive between Rs 7.50 and Rs 12 per kilogram and their claim that they were being paid only Rs 6.50 per kg is completely false.
Only 5% of farmers receive that low amount, they clarified.
"We announced in December 2025 that the rearing rate would be increased by Rs 1. Steps have been taken to provide an additional Re 1 per kg during the summer season and to increase the payment by Rs 1 per kg when the selling price increases. Meanwhile, some people in the name of the Farmers' Protection Association are engaging in undesirable activities and unnecessarily exaggerating broiler chicken rearing rate issue. Now they are asking for Rs 20 to be paid. There is no scope for that rate," asserted Ramji Raghunathan, a management consultant of PERC.
"The average foster care rate offered to poultry farmers by poultry companies in Tamil Nadu is already higher than in neighbouring states. A minimum safety margin of Rs 6.50 was set with the aim of ensuring that the companies bear the loss in case the poultry does not gain weight so that small and marginal farmers are not affected.
"The rearing amount is determined based on the ratio of feed and weight of chicken. It is given depending on how much feed the chickens consume to reach two kilograms of body weight. It is on this basis that 90% of the farmers get between Rs 7.50 and Rs 12," he explained.
He also reasoned that "broiler farming is a collective business and the poultry farmer is not a salaried worker. He is also an entrepreneur who earns a profit from his business according to his investment. The security amount of Rs 6.50 was introduced because small entrepreneurs as well as small and marginal farmers should be provided with investment protection, and only then can they engage in business."
Raghunathan cited the high costs broiler producers have to incur.
"The soybean meal required for feed production comes to Tamil Nadu entirely from only two states: Madhya Pradesh and Maharashtra. Also 75% of maize comes from Bihar and Karnataka. This has increased the cost of production and has put broiler producers in a severe crisis compared to neighbouring states. Due to this, many broiler companies headquartered in Tamil Nadu are gradually shifting their production to other states in order to reduce the cost of production," he said.
Companies are spending up to Rs 60 for producing a chick, he stated. He further said 3 lakh chicks have died so far following the farmers' protest and due to stoppage of vehicles carrying chicks by protesting poultry farmers.
The panel further said there is no possibility for holding a tripartite meeting on this issue by including the government as it was not a business run based on any government's procurement price but a business between contracting poultry companies and poultry farmers. "Our expectation is that a solution that benefits both parties be found. Farmers are advised to approach the companies and express their grievances," Raghunathan said.