Tension at Sneha Chicken Centres as Retailers Protest Margin Issues

The Association declared closure of all the chicken shops from April 1 demanding a hike in the margin from the wholesalers. But Sneha Chicken Centres continued to open and sell chicken, inviting wrath from the retailers.

Furious over opening the shops, the retailers assembled in front of Sneha chicken centres and raised slogans demanding the management to close the shops in support of retailers. This led to an argument between them prompting retailers to throw empty egg trays on the main road.

The Association 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.

The core of the conflict lies in the profit margin paid by poultry companies to retailers. According to the association, the margin per kilogram has plummeted from Rs.35 to Rs.45 to a mere Rs.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.