Egg prices tumble 20%

Wholesale egg prices have slipped about 20 per cent inthe last one month on account of declining demand as summer is round the corner. Reports of bird flu have also contributed to the slackening demand. The farmers, who were facing the rising input costs are further hit owing to fall in prices.

Prices in various cities have come down by at least 20 per cent. In Mumbai, it came down from Rs 195 to Rs 164 (per 100 eggs); in Delhi, it slipped from Rs 206 to Rs 138; in Chennai, it declined from Rs 195 to Rs 138 and in Bangalore, it came down from Rs 193 to Rs 160.

"The consumption is declining due to a rise in temperature. This coupled with some reports of bird flu has affected sales. Therefore, prices have been impacted," said A K Rajput, executive officer of Suguna Poultry.

In November-December last year, prices in most cities touched a high of Rs 200 (per 100 eggs) on rising feed costs.

"Prices usually comes down in months of March-April as the consumption demand is impacted. We have no option but to reduce prices. However, the production cost has not decreased and feed like maize remains expensive. Farmers are losing 30-40 paise an egg as the production cost remains Rs 1.40," said B R Sainath, Karnataka zonal chairman of National Egg Coordination Committee (NECC).

Prices should recover in another two-three weeks, when the farmers will start culling old flocks to reduce their losses, added Sainath.

"While cost of production is Rs 1.40, the final price including holding and transit cost is around Rs 1.60. However, ex-farm prices are only Rs 1.25 an egg and farmer is losing at least 35 paise an egg", said O P Singh, managing director of Pune-based Venkateswara Hatcheries.

Though wholesale prices have come down significantly, egg is still selling at Rs 24 a dozen at retail level.