Poultry industry suffers amid high tax, feed price

Bangladesh’s poultry industry is facing one of its most serious crises in recent years, as rising feed costs and increasing tax burdens push producers to the edge of survival. Eggs and broiler chicken once the most affordable sources of protein after rice and lentils are rapidly becoming unaffordable for many consumers.

The sector, which represents an estimated investment of Tk 50,000crore, is now under severe financial strain. Industry leaders warn that continued decline could trigger a nationwide nutrition crisis with long-term social and economic consequences.

Over the past five years, production costs have nearly doubled, with the sharpest increase recorded this year. Farmers are bearing the heaviest burden, as rising input costs continue to outpace market prices. As a result, hundreds of poultry farms have shut down, pushing thousands out of work, according to sector insiders.

Industry data show a steady escalation in production costs. Using 100 as the base index, costs rose to 115 in 2022, 145 in 2023, 170 in 2024, and 190 in 2025 highlighting a consistent upward trend.
Stakeholders say the crisis is largely driven by policy pressures. Corporate tax has been increased from 15 percent to 27.5 percent, while higher duties on feed and other inputs have significantly raised production costs.

Mosharraf Hossain Chowdhury, president of the Bangladesh Poultry Industries Association (BPIA), said Bangladesh is among the few countries imposing such a high tax burden on a food production sector.
“Instead of supporting farmers, we are increasing their burden. The impact is already visible at the production level and will soon reach consumers,” he said.

He warned that unless taxes and duties are cut by at least half, small and medium farmers will not survive, and the sector could become dominated by large corporate companies.

Currently, the cost of producing an egg stands between Tk 10.5 and Tk 11, while wholesale prices range from Tk 7.5 to Tk 8.5. Broiler chicken production costs are around Tk 146 per kg, while market prices fluctuate between Tk 145 and Tk 148.

Md Safir Rahman, secretary general of BPIA, said investment in the sector will decline unless special incentives are introduced in the upcoming budget. “No new entrepreneurs will enter the sector, and existing farmers will shift to other businesses. Eventually, eggs and chicken will become significantly more expensive for ordinary consumers,” he said.

He also noted that neighboring countries are offering strong support to their poultry industries. Pakistan, India, Nepal, Thailand, and Malaysia provide tax relief and incentives, putting Bangladesh at a competitive disadvantage.

Industry insiders said advance income tax (AIT) has increased from 1 percent to 5 percent, while turnover tax has risen from 0.6 percent to 1 percent, further squeezing producers.

Experts have called for targeted policy support, including tax exemptions, reduced import duties, and incentives for small-scale farmers. Without such reforms, they warned, the industry may become increasingly dominated by large corporations, driving prices of eggs and chicken beyond the reach of ordinary consumers.