December 17, 2012

India's egg prices have not increase as expected at the beginning of winter season, with overall egg output at 600 million annually, and only a 5% rise in production.

Shabbir Ahmed Khan, the convenor of the Poultry Federation of India, said the production capacities had been increased as there was demand in the Indian market due to a rise in disposable income, but he suggested that middlemen have been reaping the benefits.

According to Khan, the wholesale price for egg has slipped to US$0.06 per egg in December. At the same time, the cost of production per egg has increased from last year.

Devinder Ahlawat of the Haryana Poultry Farmers Association, commented that prices are sticky as the number of poultry farms have proliferated in the past few years. This business has less hassles in terms of taxes (no sales tax and excise duty), but marketing is essential. The whole sellers negotiate their terms and the farmers get a lower price.

This year could end up as a loss-making year, experts have predicted.