The consumption of chicken and eggs slumped last week triggering a price nose-dive as reports of the Avian flu spreading to India made jittery consumers turn to other sources of protein.

"There is absolutely no reason to panic, but prices are taking a beating as people feel comfortable avoiding chicken and eggs because Avian flu is now closer home", an industry official said referring to the outbreak in neighbouring India.

"Sales have dropped by about 10%-15% because of fears, but we are confident they will pick up again as people begin to realise that poultry is safe to consume", says Yakooth Naleem, Managing Director, Bairaha Farms Ltd.

With poultry consumption plummeting, fish mudalalis were in for an unexpected bonanza as the growing demand for an easily-accessible protein substitute has pushed up prices, market sources said.

"People need not fear to eat chicken or eggs as nowhere in the world has bird flu been transmitted so far through consumption", Naleem reasoned. "Normal cooking temperatures make it safe for consumption".

"This is just a temporary reaction", he asserted. "In any case, direct contact with poultry in urban areas is rather uncommon".

"The panic created is threatening the livelihood of thousands of farmers who are dependent on the poultry industry", he noted. "This is one industry in Sri Lanka we can be proud of as it is self-sufficient".

He said that with the rapid progress in poultry production, Sri Lanka will be in a position to export chicken to the Middle East and Maldives in about two years.

"In India, Avian flu has affected poultry in Maharashtra, and not across the Palk Strait in South India", he argued. "The threat is minimal as a result".

With the price of chicken being "adjusted" with the drop in demand, eggs also suffered a similar fate with the retail price plunging to five rupees or less in most areas, industry sources said.

With the bulk of maize for chicken feed imported from India, where the threat is alive, poultry producers last week conferred with government health authorities to ensure that the consignments are fumigated at that end, prior to export.

Ceylon Grain Elevators Ltd., a key maize importer in Sri Lanka could not be reached for comment as their Malaysian bosses were said to be "busy conferring", but an industry official said fumigating fresh imports is the answer as maize from Argentina is too costly.

"We had to cut down on purchases of chicken and eggs as the demand is poor", the manager of a city supermarket said. "But, our fish sales have climbed".

The Indian High Commission in Colombo assured that a series of strategic actions have been initiated immediately on confirmation of Avian Influenza in Navapur Taluka of Nundurbar district in Maharastra.

Declaration of infected (3 kms) and surveillance areas (upto 10 kms), absolute ban on movement of poultry or its products in infected areas, closure of poultry and egg markets and shops, destruction of affected poultry followed by proper disposal and vaccination of birds in the surveillance area are a part of this strategy, the High Commission said.

"There is active surveillance for those who had come into contact with poultry and all those reported to have symptoms of even upper respiratory tract infections are isolated and kept under observation following strict infection control practices, it said.