HYDERABAD: The Broiler Integration Coordination Committee (BICC) on Thursday dismissed allegations by some retail traders that corporates are acting unfairly in the poultry sector, asserting that retailer margins have remained unchanged despite fluctuations in chicken prices and sustained industry losses.
Addressing a press conference, BICC representatives said the poultry business functions differently from other sectors, with integrators and farmers bearing the bulk of investment risks and financial losses, while retailers continue to receive fixed margins. “Retailers do not incur losses as their margins are predetermined and protected,” they said.
The committee stated that retailers are currently being given a margin of Rs 44 per kg. Even during the Covid 19, when the sector faced severe disruptions, companies ensured margins of around 40 per kg, at times supplying chicken at minimal prices or even free to support retailers.
Highlighting financial performance, BICC said poultry companies suffered losses in 3 of the last 5 years. In 2022-23, the industry recorded a loss of Rs 7.96 per kg, with total sales of Rs 10 crore kg, and operations sustained through bank loans. Losses continued in 2024-25 at Rs 6.53 per kg. However, marginal profits were recorded in 2023-24 (Rs 0.69 per kg) and 2025-26 (Rs 1.61 per kg), while losses in 2021-22 stood at Rs 1 per kg.
Responding to demands from sections of traders for higher margins, BICC noted a lack of consensus among them. “Some are asking for Rs 40 per kg, others want an increase of Rs 10, while a few demand Rs 30. There is no clarity in these demands,” representatives said. The committee also pointed out that companies operate their own retail outlets where chicken is sometimes sold at Rs 20-30 less per kg. Despite this, firms continue to supply to traders at the prevailing printed price to avoid affecting their business.
Explaining price fluctuations, BICC said the poultry sector involves coordination across 14 departments and is highly dependent on supply levels. When local production falls, chicken is sourced from states such as Maharashtra, Odisha and Chhattisgarh, leading to higher transportation and associated costs, which push prices upward. Conversely, prices decline when local production improves.
Reiterating its stand, BICC said fixed margins for wholesalers and retailers remain unchanged, adding that investment risks and losses are borne entirely by integration companies.