Trade Minister Nalin Fernando, who boasted that chicken can be imported from India for Rs.850, and the ministry officials have realised that the production cost of a kilogram of local chicken is over Rs.1,000, internal ministry sources said.

This has been revealed during a recent discussion held among the minister, officials and local poultry businessmen.

Later, as usual, the minister had placed the blame on the officials for making wrong calculations, it was reported.

The local poultry business men have requested that they be given import licenses if chicken is to be imported based on the minister’s proposal. The minister has withdrawn the proposal due to this request.

Meanwhile, it was reported that Rohan Fernando’s Rodesha Group of Companies which supplies chicken to military bases was to get the tender if chicken is to be imported from India.

Rodesha is the company with the largest freezer storage facilities.

Meanwhile, the Poultry Producers Association has agreed to sell a kilo of chicken with skin at a price of Rs.1,250 from September 02.

Had the producers failed to come to this decision, there was a risk of further decrease in government revenue due to the import of chicken from India.

At present, poultry producers indirectly pay almost Rs.216 as indirect taxes when producing one kilo of chicken.

However, such a large amount cannot be levied as a tax when importing chicken.

Following the import of eggs from India, the special commodity tax of Rs.50 imposed by the Ministry of Finance on an egg was reduced to one rupee by the Sri Lanka State Trading (General) Corporation Limited from February 21.