Hyderabad: Tension prevailed at several Sneha Chicken Centre outlets across Hyderabad on Wednesday, April 1, as a strike called by the Telangana State Chicken Shop Owners Association over profit margins turned contentious, with protesters throwing eggshells at the retail chain’s stores for staying open despite the bandh.
The association, which represents chicken shop owners across the state, called for a complete shutdown from April 1 to press its demand for better profit margins from poultry companies. While most outlets complied, Sneha Chicken Centres, a retail chain, kept its stores running, drawing the fury of the striking traders.
Protesters gathered at several locations, raised slogans against the chain and staged a demonstration at Dharna Chowk.
Association president Satish Goud said the retailers had been demanding an increase in profit margins for the past two months, with little response from poultry companies. “We called for a bandh and all owners agreed to it except Sneha Chicken Centres,” he told Siasat.com.
Why chicken shop owners are protesting
At the heart of the dispute is the margin structure imposed by poultry companies on retail sellers. Goud said the current margin of Rs 30 per kg left shop owners with barely Rs 10 in hand after accounting for staff salaries and the weight loss that occurs during cutting and cleaning.
The association is demanding a margin of Rs 50 per kg to ensure at least Rs 20 in net earnings per kilogram sold.
“We asked the companies to increase the margin since we are left with virtually nothing after paying rents and salaries,” Goud said, adding that the companies had not accepted the demand, prompting the shutdown.
Traders also took aim at Sneha Chicken Centres for selling items such as flour, oil and salt, alongside chicken. “This is a chicken retail chain. Why are they selling other items? They are entering our domain and hurting us,” Goud said.
Krishnanagar-based shop owner Sarwar echoed the concerns, pointing out that some poultry companies supplied chicken to restaurants at lower rates, making it increasingly difficult for small retailers to survive. “The selling price is decided by the companies. With weight loss after cutting and cleaning, what looks like a Rs 30 margin on paper translates to a loss for many of us,” he told Siasat.com.
The association said it had displayed notices at shops for the past 10 days informing customers of the planned closure.
