January 4, 2023

 

Sri Lanka permits egg imports

The Sri Lankan government approved the import of eggs, in response to a shortage brought on by local poultry farmers leaving their farms as a result of a price control regime, La Prensa Latina reported.

 

Before allowing the import of eggs, the government reportedly held discussions with stakeholders about the shortage and rising prices.

 

The maximum price for a white egg was capped by the government in August at LKR 43 (~US$0.12; LKR 10 = US$0.027) and LKR 45 (~US$0.12) for a brown egg.

 

The cap was eliminated by the government last month.

 

A severe shortage resulted from the price control regime, which forced several poultry farmers to abandon their business. Experts said it will take at least two years for the market to recover.

 

There is an estimated 40% shortage of eggs on the market.

 

An egg cost about LKR 60 (~US$0.16) in December 2022, more than double the LKR 25 (~US$0.065) it cost in the corresponding month of 2021.

 

For more than a year, Sri Lanka has been battling a severe economic crisis. The government is considering accepting the International Monetary Fund's US$2.9 billion bailout offer.

 

Multiple reports suggest that Sri Lanka is about to experience a new food shortage crisis. A UNICEF report found that 6.2 million people, or 28% of the island's total population, are thought to experience moderately acute food insecurity.

 

Sri Lankan poultry traders said that allowing egg imports will have a negative impact on the island's economy.

 

Ajith Gunasekara, president of the All Island Poultry Farmers Association, said that Sri Lanka's poultry industry generates an annual income of LKR 15 billion (~US$41 million).

 

Gunasekara said importing eggs would have a number of negative effects, such as losses for neighbourhood farmers, who last year kept the sector afloat despite COVID-19 restrictions and a fuel shortage.

 

-      La Prensa Latina