Chicken Shops In Telangana To Shut From Today Over Profit Margins

HYDERABAD, WARANGAL: Food lovers across Telangana, facing reduced availability their favorite street foods, thanks to the ongoing shortage of commercial LPG cylinders, will be dealt an additional blow from Wednesday with retail chicken shop owners declaring a strike. The shutdown is expected to make life even tougher, cutting off supplies of chicken biryani, kebabs, 65s, lollipops, and fried chicken.

The decision to indefinitely close their outlets was taken at a meeting of the association in Hyderabad, Posters announcing the strike have appeared in Hyderabad, Warangal and Karimnagar, warning customers of the upcoming closure of chicken shops.

Gaddamidi Raju, president of one of the associations, urged the state government and poultry companies to respond positively, noting that over 50,000 retail chicken centres operated across the state, excluding corporate outlets. In Hyderabad, within the Outer Ring Road limits, more than 20,000 such centres employ over 3 lakh people directly and indirectly. Each shop handles sales from 1 to 12 quintals daily, with the capital consuming 10-12 lakh tonnes of chicken annually.

Raju complained that escalating rents, worker wages, electricity bills, and transport charges have burdened operations, while companies fail to provide fair margins. They plan to close shops from 9 am and hold a protest at Dharna Chowk from 10 am on Wednesday.

The core of the conflict lies in the profit margin paid by poultry companies to retailers. According to the shop owners’ association, the margin per kilogram has plummeted from ₹35–₹45 to a mere ₹17 now. Shop owners contend such a small amount is insufficient to cover basic operational costs, including shop rents, electricity bills and staff wages.

The retailers alleged that with no government oversight, large poultry firms were dictating prices without leaving fair profits for small retainers. Poultry production had fallen during summer while maintenance costs had increased. Traders said they have no choice but to down shutters until their demands are met.

Telangana Chicken Shop Owners’ Association president Nellutla Shekhar underlined that the rise in chicken prices even at ₹350–₹400 a kg in some areas did not benefit retailers. Despite multiple requests, poultry companies had refused to increase the retailers’ margin.

The perspective of poultry companies was different. Kishan Reddy, representing the companies, questioned the timing of the protest. He pointed out that the new rates had become applicable from last August-September. “If there are no profits, how have they run their businesses all these months,” he asked.

The company representative maintained that retail traders’ strike could not last long.

If the strike continues indefinitely, as stated by retailers, it is expected to create a shortage of chicken in the market, leading to a spike in the prices of other meats like mutton and fish. Hotels and restaurants, which rely heavily on daily chicken supplies are bracing for the impact.