‘Due to prevailing dull market wholesale price will be fixed on a daily basis'

Steady decrease in wholesale egg price has badly hit poultry farmers as they would incur a loss of 10 to 15 paise per egg. The National Egg Coordination Committee (NECC) of Namakkal Zone reduced its price from Rs. 2.55 on Tuesday to Rs. 2.45 on Wednesday.

Committee sources told The Hindu that there was no better option but to reduce price to clear the stocks that got stagnated during Pongal. Wholesale price of the commodity reached a record high Rs. 3.20 on December 26 and remained at the same level till January 7 before it started to drop.

The first reduction was by 15 paise on January 8, followed by another 10 paise the following day to stand at Rs. 2.95.

“This price was maintained for the next 10 days before it was brought down to Rs. 2.70, Rs. 2.65, Rs. 2.55 and Rs. 2.45 – an overall drop of 75 paise in 18 days,” a poultry farmer noted.

“Usually 20 paise is deducted by traders from the NECC board rate towards packing, handling and transportation charges but the heavy piling up of stocks has forced farmers to increase this deduction by up to 75 per cent – 35 paise per egg,” the farmer added.

According to him the production cost of an egg is around Rs. 2.30 and deduction of 35 paise will bring down the realisation price to Rs. 2.10 which means a loss of 20 paise per piece. The officials said that the retail price of egg that touched Rs. 4 when its wholesale price notched the record price is now below Rs. 3 and as low as Rs. 2.50 in some parts of Tamil Nadu.

“Consumption is now picking up and we expect the accumulated stocks to be cleared in the next five days,” an NECC official said and added that the existing price (Rs. 2.45) will continue till Sunday while further decision on increasing or reducing price will be taken at the rate fixation meeting on Monday.

Zonal Chairman of NECC P. Selvaraj stated that egg price in other zones were also brought down drastically as vegetable prices had come down heavily and attracted a better consumer market. “The reduction in egg rates is expected to help egg get back its consumption market,” he added.

Dr. Selvaraj said that due to prevailing dull market conditions the wholesale price would be fixed on a daily basis – unlike the routine wherein it used to be fixed thrice a week.

He made it clear that this was only a temporary arrangement till the price and market stabilises.

  • Production cost of an egg is around Rs. 2.30

  • ‘Consumption is now picking up'