In a bid to clear more than eight crore eggs that got stagnated during Diwali, the National Egg Coordination Committee (NECC) has dropped the wholesale price of egg by 35 paise from Rs. 3.10 to Rs. 2.75 on Wednesday.
This drastic price drop is not quite common, as the usual rate reduction in a maximum of 15 paise a day.
“It would take three days to bring price egg to what was fixed on Wednesday. But the price drop was an exemption as we had to boost sale of egg in the retail, where the price of egg is based on price fixed by NECC. It is expected to come below Rs. 3 in a couple of days and boost egg sale,” Chairman of the NECC Namakkal Zone Dr. P. Selvaraj told The Hindu .
He said that there was a slowdown in egg sale after bird flu outbreak in Karnataka in the last week of October.
“Before it was back to normal, the Diwali holidays resulted in stagnation of eggs. The stocks could not be cleared till date as the Iyappa season in Kerala and Karthigai in Tamil Nadu when many devotees turn vegetarians began, due to which the stocks could not be immediately cleared,” he observed.
The NECC Chairman said that on the other hand, sale of egg in Kerala – the second big egg market for eggs from Namakkal – dropped by about 25 percent from the little more than one crore eggs that used to be consumed in Kerala every day, after the bird flu outbreak, due to short term consumer resistance.
Dr. Selvaraj said that this was one of the important reasons for delay in clearing eggs.
He also attributed the price drop to uncertainty in the egg export market in the post bird flu scenario.
“However the price will not drop further and will start picking up again after the stocks are cleared,” he added.
President of the Tamil Nadu Poultry Farmers Association R. Nallathambi said that picking up of winter in North India has lead to increase in demand for eggs in those States.
“We are confident that the drastic price drop will increase movement of eggs to Bombay (Maharashtra) and other North Indian States,” he said.
Meanwhile the NECC has advised poultry farmers to sell 65-week-old hens for meat.
“This is because they steadily lay eggs till they are 72 weeks old. The culling of birds seven weeks in advance will reduce production that will match market requirements. Doing so will help farmers realise better price for their eggs without much delay,” an NECC source said.
Price was reduced in order to boost sale of eggs in the retail market There was slowdown in egg sale after bird flu outbreak in Karnataka
Price was reduced in order to boost sale of eggs in the retail market
There was slowdown in egg sale after bird flu outbreak in Karnataka