November 26, 2010

Winter demand from India's north region to boost egg prices

India's egg prices, which hit a record INR2.90 (US$0.064) a piece earlier this month, are likely to firm up on rising consumption coming from winter demand in the north.

The farm-gate price of egg this week was raised to INR2.82 (US$0.062) a piece from last week's INR2.80 (US$0.061) (it is sold at INR3-3.25 (US$0.066-$0.71) in the retail market), on account of perceived decline in the layer population and recovery in domestic consumption after the austere months.

According to a National Egg Coordination Committee (NECC) official, Namakkal zone, prices will continue to rule firm until the end of Sabarimala season.

Industry sources said that farmers have begun placing layer chicks, which will start laying eggs after 24 weeks, during the austere months so that they can build up inventories. (A chick takes 24 weeks to hatch eggs). However, they feel egg prices will not come down as the poultry feed prices jumped by 30%-50% in the past two years.

Meanwhile, Palladam-based Broiler Coordination Committee has reduced the price of live birds by INR5 (US$0.11) a kg from last week's INR48 (US$1.05) per kg. NECC has maintained the prices of its layer birds at last week's level of INR36 (US$0.79) per kg.

Namakkal and Palladam prices are the benchmarks for eggs and chicken, respectively, in the country.