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Punjab Lets Shopkeepers to Control Chicken Prices Themselves

In April 2025, the Punjab government completely changed its policy by withdrawing the official control chicken prices across the province. Allowing shopkeepers to fix chicken prices on their own. However, the government fixes rates only for live chicken. The Punjab government indeed exercised thorough control so that the price of chicken meat remained stable within the economy and prevented price gouging for consumers. Official rates were announced regularly, and price control mechanisms were enforced through the Price Control Council under the Punjab Price Control of Essential Commodities Act 2024. For example, chicken meat was priced at Rs. 595 per kilogram, and live chicken prices were also fixed to prevent market volatility. 

Deregulation of Chicken Meat Prices

On April 4, 2025, the Punjab government announced the end of fixation of prices for chicken meat through a notification. According to this decision taken in the sixth meeting of the Price Control Council, only live chicken rates are to be officially termed from now on, while it shall be left to market forces and the discretion of shopkeepers themselves.

Reasons Behind Deregulation

The following are some of the reasons that made the Punjab government decide to deregulate chicken rates:

Market Distortions: Official prices had not varied during the past six weeks, even in instances when supply and demand changed, which splits an economic principle in half.

Governance Difficulties: It was a criticism of the enforcement of control chicken prices and a large nexus of mafia-like groups unlawfully grasping rates.

Encouragement to Market Efficiency: It is thought that by pricing items themselves, shopkeepers become subject to market discipline and thus, they may improve overall supply chain responsiveness and reduce activities regarding the black market.

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Fix Chicken Prices after Deregulation

Ever since deregulation has taken place, chicken rates have become all the more volatile and certainly higher than the earlier fixed price of Rs. 595 per kilogram. For example, in Rahim Yar Khan, the price of retail meat has soared to about Rs. 620 per kilogram while live meat is selling at an official price of Rs. 358 per kg. A similar phenomenon is happening in Lahore, where retail prices have risen from Rs. 760-780 per kg, well above the officially defined rates, indicating a lack of effective control chicken prices.

Impact on Consumers 

Additionally, deregulation has brought great disappointment among consumers due to high and fluctuating rates. Consumers say that they might be exploited by the shopkeepers under these conditions, as these have been granted the complete freedom to charge higher rates without government intervention. This has led to calls for restoring controlled pricing or instituting some new mechanisms so that consumers are protected against price manipulations.

Conclsuion

The Punjab government has taken a significant policy turn away from the present one of controlled pricing, allowing shopkeepers to fix chicken prices based on their market judgment. With this deregulation comes the potential for efficiency and flexibility, but equally, there are risks of price manipulation and consumer hardship. In the long run, effective government monitoring, protection of consumer rights, and a supportive framework for the market would be indispensable in developing a fair and stable poultry market in Punjab.

FAQs

The Punjab government, as of the 4th of April 2025, has put an end to the official fix chicken prices throughout the province. As of today, the government only notifies the prices for live meat, while the poultry shopkeepers are free to fix their rates for meat.

The price fixing was further complicated by the ever-present mafia groups operating and distorting the market. After having fixed prices for six weeks or more, those prices were stagnant with changes in demand and supply, a blatant violation of economic theory. Thus, deregulation is supposed to foster a market-determined pricing approach and induce more responsiveness to supply. 

Deregulation has generally allowed for an increase and has become more volatile. In Lahore, for example, prices are now around Rs. 760-780/kg, much higher than the previous fixed price of Rs. 595/kg. Consumers have expressed frustration concerning these rising prices.

Consumers are facing high and fluctuating prices, and protests for the restoration of controlled rates have surfaced. On the other hand, shopkeepers are welcoming the flexibility to change rates according to market conditions to their advantage, as variable pricing may enhance their profitability or mitigate losses from fixed low rates.

Yes the government still announces prices for live meat and reserves the right to intervene if an unfair pricing or widespread market restlessness situation occurs. The concerned authorities will keep an eye on the market and respond to consumer complaints to ensure a modicum of market discipline.

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