The price of an egg has been raised by three paise to Rs 2.26 in the Namakkal zone, comprising Tamil Nadu and Kerala, on hopes demand will improve. Three days ago, the price had been hiked by a similar margin.

“We are nearing the end of May. The India Meteorological Department has projected that the South-West Monsoon will set in on May 30. We expect demand for eggs to rise once the monsoon sets in,” said a National Egg Coordination Committee source. Namakkal sets the tone for the rest of the country. However, this hike has been made since the price was raised in centres such as Hyderabad and Barwala (Haryana).

However, an egg industry official from Coimbatore said egg consumption continued to be slack.

“Demand will pick up only when schools reopen after summer holidays,” the official said.

The noon-meal scheme, in particular, will help increase consumption. Under the scheme, school children are given two eggs a week in their meals by the Tamil Nadu Government.

“The offtake through the scheme is 22 crore eggs. It makes up eight days or 22 per cent of the production,” the official said.

Though egg prices have been increased twice within a week, they are still below the cost price. “What is quoted as the price is in fact the rate at which eggs are offered in wholesale markets. The lifting price is actually between Rs 2 and Rs 2.05,” the official said.

Elsewhere in the country, in places such as Punjab, Barwala, Hyderabad and Ajmer, the price of an egg is below Rs 2.

A slowdown in exports is also not helping the industry, the industry source said.

Meanwhile, the layer bird rules stable at Rs 38 a kg, while broiler prices have been cut to Rs 3 to Rs 54 a kg.

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