Rs 4 for an egg!! Unbelievable? High feed cost and lower production are going to push up the prices of the layman?s staple diet.
If the current situation continues, the price of eggs is expected to go up to Rs 3.5 to Rs 4 per egg in the retail markets from the present level of Rs 2.25 to Rs 2.3 per egg, unless the production improves.
With the production falling down, the Rs 70,000-crore poultry industry has suffered a major set back in the international market as well.
Despite the government declaring the country as bird flu free, the exports have shrunk from 40 lakh to 50 lakh eggs per day to less than 10 lakh eggs per day.
The revenue has eventually fallen from Rs 37.5 crore per month to Rs 9.37 crore per month. With the suppliers signing long-term agreements at fixed cost, even if the international prices move north, the farmers do not derive any benefit.
According to KV Subba Raju, Zonal Chairman, NECC, Hyderabad , egg production has taken a big beating in the recent past, which has created a direct impact on the prices.
Due to lack of government support, small and marginal farmers who are reeling under pressure due to higher cost of production have in fact shifted to other businesses thereby hitting the total production.
Industry experts also explained that the bird placements have reduced in the recent past, thereby bringing down the overall production. The main cause has been the mounting losses (25,000 birds) incurred by small farmers, who have been forced to shut doors. On one hand, the farmers have been suffering due to higher feed cost and on the other they were under the constant grip of fear of bird flu.
The feed cost has gone up over the years from Rs 6,000 to Rs 7,000 per tonne in 2007 to Rs 13,000 per tonne now. Similarly, the broiler feed has increased from 10,000-Rs 11,000 per tonne to Rs 17,000 to Rs 18,000 per tonne.
For example, during the past two years, maize price increased from Rs 525-550 per quintal to Rs 900 and in some places, even to Rs 1,000. And the price of soya meal increased from Rs 9,000 per tonne last year to little over Rs 20,000 now.
?It is definitely not a viable and remunerative proposition for small farmers, since feed cost accounts for about 80% of the overall cost of production?, experts said.
Earlier, there were about 60,000 farmers across the country, and around 14,000-15,000 in Andhra Pradesh. But now, nearly 10%-15% of them are out of business, they added.
This obviously has brought down the overall production drastically. From 13.5 crore eggs per day of production last year, it has now come down to 11.5 crore eggs per day.
?Before December, price of egg was less than Rs 2 and now it has gone up to Rs 2.3 per egg. Prices would only go up to say Rs 4 per egg unless the production is improved?, they said.
Meanwhile, the industry is also worried about the domestic consumption pattern, which is also on the declining trend. ?With the onset of festive seasons, the demand for poultry products may take a beating.
This might further bring decrease the production as many more farmers will decide to shut shop?, fear small and marginal farmers.