Demand and prices of poultry products took took a heavy beating in Maharashtra along with Gujarat, West Bengal and Madhya Pradesh but remained by and large unaffected in the rest of the country. The industry, however, is keeping fingers crossed, preferring to wait for a reconfirmation before deciding the course of action.

"It's too early to comment on the impact on exports and domestic sales as the so-called bird flu in Nandurbar has been identified as 'Ranikhet (RD)' by the state government agencies. Any decision could be taken only after a re-examination of the entire issue," said O P Singh, managing director of Venketeshwara Hatcheries.

"The domestic business would not be affected if the bird flu was not confirmed in the re-examination but four million rural people who are part of the industry would be affected," Singh added.

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Sale of chickens in Mumbai dropped with traders and wholesalers saying customers were wary of buying after news reports that strain of the deadly h5n1 virus was found in samples of birds.

Although there has been no drop in prices, sale has dropped. However if this continues, then the prices will drop since the demand will be much less, said a meat shop central Mumbai.

Wholesalers from Crawford Market said the price for chickens was at present Rs 50 per kilo but was likely to see a drop in sales.

Although most fowls sold in Mumbai come from Pune, traders said the fear factor was more likely to affect the sale than actual facts.

Reports from other districts also gave news of adverse effect on the markets.

He confirmed that the Maharashtra government planned to have a re-look at the outbreak by sending samples to three different laboratories, including the Animal Disease Laboratory in Bhopal, which had earlier confirmed avian influenza (H5N1) virus. Two other laboratories where the samples will be sent are IVRI, Bareily and RDDL, Pune.

In 1994, India had lost Rs 150 crore (Rs 1.50 billion) in exports due to the outbreak of a similar virus.

Earlier, the chief secretary of Maharashtra visited Nawapur district, where reportedly 50,000 chickens died of a deadly bird disease.

Bird flu is a contagious disease of animals caused by viruses which normally infect only birds and, less commonly, pigs. The viruses of of the H5 and H7 subtypes are known to cause the highly pathogenic form of the disease. Humans get infected through direct contact with infected poultry or surfaces and objects contaminated by their faeces.

Taking quick action, the Union government has rushed a team of experts to Maharashtra to take stock of the situation. In a statement, Agriculture Minister Sharad Pawar said, "We have sent an expert team (to the site) and are awaiting authentic information from laboratories."

The Centre has also assured the state governments of requisite supply of drugs.