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20 Nov 2017

Egg prices sky-rocket across India. Will we get relief soon?

Egg prices at an all-time high in India

If you go grocery shopping regularly, you would surely have noticed that egg prices have shot through the roof.

According to The Hindu, prices are at an all-time high. In many places, it is now as costly as chicken!

The effects are being seen across the county, from Pune to Delhi to Kolkata to Chennai.

What's driving up egg prices so high?

In context

Egg prices at an all-time high in India
Prices have rocketed in the north, south, east and west


Prices have rocketed in the north, south, east and west

Different media reports have charted the price of eggs in various cities: in Pune, poultry farmers are charging Rs. 585 for 100 pieces, implying a retail cost of Rs. 6.5-7.5/piece.

In Namakkal (TN), India's second biggest egg production zone, wholesale prices reached Rs. 5.16/piece, roughly Rs. 7-8/piece in retail.

In Delhi and Kolkata, eggs are selling for about Rs. 7/piece.

As egg prices increased 25%, broiler chicken's came down 30%

Meanwhile, as average egg prices surged 25% in the last month, cost of broiler chicken came down up to 30%. In Punjab's markets, prices dropped from Rs. 132/kg in October to Rs. 101 now. In Pune/Nashik, it went down from Rs. 70 to Rs. 62.

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Low production and high demand a result of several factors

Stakeholders have attributed this rise in prices to a combination of factors. Demand is generally high in the winter season.

But production is low this time due to drought in TN and Karnataka and intense cold wave in the north, among others.

Veggie prices have also increased sharply, thus boosting demand for eggs.

Some even linked it to demonetization.

When are prices expected to stabilize?

According to the Poultry Federation of India, relief is unlikely in the near future. It says the supply deficit is likely to remain for a few more months, till February-March, 2018. Till then, egg prices are also expected to stay firm.

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