)
After hitting highs in June, prices of poultry products have started softening in July due to slump in demand.
Overall consumption of chicken and egg has declined due to the ongoing Ramadan festival.
Skylark Hatcheries is selling "Mota" variety of broiler chicken in Pilani at an average price of Rs 85.11 a kg, a decline of around 5% from the average Rs 90.1 a kg in June. Similarly, eggs are quoting at a price of Rs 2.80 a piece, lower than the average price of Rs 3.10 a piece last fortnight in the Ajmer market. The premier industry body National Egg Coordinating Committee (NECC) has quoted egg price of Rs 2.80 a piece.
Chicken prices had shot up around 50% between April and June on intense heat wave, which killed birds in large numbers in farms. This had also created a supply bottleneck amid rising demand from consumers.
"Historically, prices of poultry products go up normally in May and June. But, with the climate change in June, the prices start moderating," said GB Sundararajan, Managing Director, Suguna Foods, one of the largest poultry producers.
P Tamil Arson, vice President of NECC (National Egg Coordinating Committee Namakkal), said, "A massive loss of about 5 million birds in Andhra Pradesh due to heat stroke in June created a supply bottleneck and the egg prices increased last month but started plummeting again due to tepid demand in wake of delayed monsoon and high temperatures."
Experts believe that there is a clear cut de-link between input and output prices. The price of bird feed remained subdued in the last few months. Average price of bajra, for example, slumped to Rs 1,205.19 a quintal in Delhi in June, a decline of around 3% from the average price of Rs 1,241.6 a quintal in May. Currently, bajra in spot Delhi market is quoting at Rs 1,200 a quintal.
"There is no linkage between the prices of input and final products. Prices are determined purely by demand and supply. Poultry product prices are likely to remain subdued for the next six months until the next year due to weak demand," said Sundararajan.
There has not been much variation in the price of poultry feed due to good maize production and availability of soyabean. The average feed cost is estimated between Rs 16-Rs 18 a kilogram for two years.
Shabeer Ahmed Khan, Executive member of the Poultry Federation of India says the fall in egg price is due to manipulation by middlemen as the price of egg in retail market has not gone down.
"A consumer is getting egg at the same price and it is only the farmer that gets lesser price," he added.
