The Madhya Pradesh government has shut down all chicken and poultry shops within one kilometre of farms in Indore and Neemuch that have reported positive cases of bird flu. All such shops will be closed for at least one week, the state government ordered.
Poultry shops and farms within a 10 kilometre radius are being monitored for signs of infection.
The Health Department will also test all owners and employees. An extensive door-to-door screening programme for residents of areas contiguous to these shops will also be held.
On Wednesday Chief Minister Shivraj Singh Chouhan reviewed efforts being taken to prevent the spread of the virus in the state.
The Chief Minister said his government had banned shipments of chicken from Kerala and other southern states for the next 10 days.
"Bird flu symptoms were found in Kerala chickens and (those from) other southern states. We have decided no chicken from these states will be allowed for 10 days," he told reporters in Indore.
"I have reviewed the bird flu situation... there is no cause of worry. We are keeping a constant watch on the situation," Mr Chouhan added.
Concern over the spread of bird flu was flagged after the mass deaths of crows (so far around 700) were reported from across the state, including Indore, Agar Malwa and Mandsaur.
Across India, lakhs of birds have been found dead over the last 10 days, with at least four states - Himachal Pradesh, Madhya Pradesh, Kerala and Rajasthan - confirming bird flu infections.
Earlier this week the government advised affected states to strengthen the biosecurity protocols, disinfect affected areas and properly dispose of carcasses in their efforts to contain the disease.
States were also asked to ensure timely collection and submission of samples for testing and undertake surveillance to prevent the disease spreading to humans.
The potential bird flu outbreak comes as several cities and states, including Indore in Madhya Pradesh, continue to fight the novel coronavirus pandemic.
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