Government has initiated the process for opening the poultry sector for foreign direct investment which was banned along with the other 23 sector sectors by the Foreign Investment and Technology Transfer Act 1992 (link).
As per the directive of Industry Promotion Board, Ministry of Industry has prepared the proposal which was tabled at the Cabinet meeting. The ministry proposal plans to allow foreign companies to invest in joint-venture model, keeping the upper bar 75 percent for the foreign company. In addition to it, to enter into the poultry sector, foreign company are required to invest Rs. 500 Million and at least grow 200,000 chicken in a lot.
Although the entry of foreign business giant may affect on the local poultry farmers competing capacity, the new business can bring out improved breed, modern technology, generate greater employment opportunities, open up more space for the feed manufacturers, push the meat processing market and all.
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