Commodities

Egg boils on rising demand

Our Bureau Chennai | Updated on November 15, 2017

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After a short respite in January during the Pongal holidays, egg and chicken prices are again on the rise as demand builds up.

The National Egg Coordination Committee's Namakkal zone has increased the prices of eggs to Rs 2.40 a piece from last week's Rs 2.25. ?Prices will move up by 5-10 paise in the coming days,? according to Mr P. Selvaraj, Chairman of NECC's Namakkal zone.

After hitting a record Rs 3.02 in January, egg prices plummeted 40 per cent owing to accumulation of stock, buyer resistance and seasonal uncertainties affecting the margins of small poultry farmers. The Namakkal region produces 3 crore eggs a day. Overall consumption in Tamil Nadu and neighbouring Kerala has risen by 15-20 per cent.

NECC has raised the prices of layer birds to Rs 27/kg (Rs 25) while the Palladam-based Broiler Coordination Committee has increased the prices of cull birds to Rs 62/kg (Rs 60). ?Prices are likely to rise gradually during end-March when demand for animal protein is on the rise during summer and it outpaces supply in a lean season,? he said.

Rising Feed prices

Escalating feed prices also are pushing up the egg prices. ?A year ago, feed cost was Rs 400/bag and now it has increased to Rs 1,100. To cope up with this huge jump, we are forced to pass on part of the price rise to consumers,? said a poultry owner. Feed costs account for 40 per cent of the total cost of production. On the export front, the trade is now focusing more on neighbouring Sri Lanka as the country has decided to import eggs from India until the shortage is met there and domestic prices stabilise. India, since mid-December, has exported around 18 lakh eggs to Sri Lanka.

Published on March 03, 2011

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