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GST impact: No chicken sale in Kerala from Monday

  • Poultry farmers in Kerala are planning to close down the shops indefinitely from Monday
  • The state government had ordered poultry farmers to sell chicken for ₹87 per kilo
  • Traders stated that it is not possible to sell products stocked before GST at such low price
GST impact No chicken sale in Kerala from Monday

Poultry farmers, especially those who have invested in broiler chicken business have decided to stop their business starting Monday, to protest the government move to reduce the price. Post Goods and Services Tax (GST), the state government had ordered poultry farmers to sell chicken for ₹87 per kilo.

Starting Monday, the farmers will stop selling chicken in the state. The implementation of GST has ruffled the feathers of poultry traders, dealers and merchants in the state. The merchants and traders are planning to close down the shops indefinitely after discussions with the government failed. The dealers asked for a three months relaxation period to implement GST, but the government was adamant that it wouldn't allow the sale of chicken above ₹87 per kilo. 

Traders were selling chicken for ₹180 per kilo till Saturday and stated that it is not possible to sell products stocked before GST at such low price and they need time to sell out current stock at VAT regime price. 

 Kerala Vyapari Vyavasayi Ekopana Samiti (KVVES) members had agreed to sell the products procured after the launch of GST at a price mentioned by the government but is demanding some time to sell out existing stock. They also allege that the commercial taxes and legal metrology departments were creating difficulty by inspecting shops. 

Meanwhile, Finance Minister Thomas Issac said that the government is not ready for a bargain and demanded traders to reduce price with immediate effect. He also said that the dealers are challenging the government and the people by deciding to shut down shops. 

The chicken price had shot up in Kerala after the launch of GST. State government interfered after price rose by ₹50 per kilo. The price of chicken sore up from ₹130 per kilo to ₹180 per kilo. 

However, there are allegations that Tamil Nadu lobby has a role behind government intervention. Farmers in Pollachi and other border districts, from where broiler chicken is brought to Kerala, is creating a shortage in the state. 
 

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