After hovering at Rs 2.30 a piece during the first week this month, egg prices continue to stay flat at Rs 2.10 owing to an increase in production and a dip in consumption.

According to Mr P. Selvaraj, Zonal Chairman of National Egg Coordination Committee, Namakkal zone, the drop was to stay in pace with the price of other NECC zones across the country, as the soaring mercury has reduced offtake.

Egg prices touched a record high of Rs 3.02 a piece in January buoyed by the cold wave experienced in northern India – a major poultry consumer.

With an equally hot summer in the North, the consumption has dipped.

Statistics available with the NECC reveal that the daily egg production in the zone has increased by more than 21 lakh (from 2.55 crore in March 2010 to 2.76 crore in February 2011) which is also contributing to the drop in prices.

Industry sources said that Hyderabad, a major supplier to northern markets, has started focusing on Chennai – a highly potential consumer market – at a highly competitive price, forcing the Namakkal zone to drop the price. Moreover, the weekly supply of 3.5 crore eggs to government schools under the noon meal scheme has taken a hit owing to summer holidays.

Meanwhile, NECC has revised upwards the price of its layer birds to Rs 40/kg from last week's Rs 35/kg. Palladam-based Broiler Coordination Committee too has increased prices of cull birds to Rs 66/kg from last week's Rs 56/kg as there is demand for animal protein during summer.

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