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Bird flu hits India poultry trade
 India is one of the world's largest producers of eggs |
Poultry exporters say they have already suffered more than $45m in losses and say exports have been badly hit, particularly to the Middle East.
More than 500,000 birds have already been slaughtered in Navapur town, where the strain was found.
India's poultry industry is valued at an estimated $6.7bn.
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Bird fluThe country is one of the world's largest producers of eggs and poultry.
Pakistan, Sri Lanka and Nepal have already banned the import of poultry products from India.
But P Valsan, secretary of the All India Poultry Products Exporters' Association, said the main worry was whether the Middle East would also enforce a ban.
"This is a major market for the export of eggs and other poultry products which are then sent on to the European Union and Japan," he told the BBC.
"If this continues, we expect a loss of around 500m rupees ($11.2m).
Off the menu
Poultry traders have asked the Indian government to urge people not to panic.
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Sales of poultry have come down across the country, with chicken prices in major cities said to have come down by 40%.
Some restaurants in Mumbai (Bombay) and Delhi are have taken chicken off the menu.
One of Delhi's oldest restaurants, Karim's, said it has stopped serving chicken since Monday.
"Nobody has ordered us to do it but we felt we should take the step as a precautionary measure," the restaurant's managing director, Zaimuddin Ahmed told the BBC.
State-owned airlines Indian and the country's largest carrier, Jet Airways, have also dropped chicken from their in-flight meals.
Indian Railways has banned the serving of chicken or eggs "in any form" from all its services.
Seven new patients, mostly children, showing flu-like symptoms have been quarantined in a hospital in Navapur where the H5N1 strain was found, PP Doke, the Maharashtra's health department director, told the BBC.
On Saturday, two people were quarantined.
Mr Doke said the children had handled dead birds in the farms.
Meanwhile the slaughter of chicken continues in Navapur and is expected to be finished by Wednesday evening.
A thousand birds were found dead in Hingoli town, the state animal husbandry minister, Anees Ahmed, told the BBC. Samples have already been sent to a laboratory for tests.
The H5N1 virus does not pose a large-scale threat to humans, as it cannot pass easily from one person to another.
Experts, however, fear the virus could mutate to gain this ability, and in its new form trigger a flu pandemic, potentially putting millions of human lives at risk.
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