March 29, 2007

Chicken and egg prices soar in India

Egg and dressed chicken prices have shot up in India as the poultry industry recovered from the disastrous effects of bird flu last year.

The price of an egg is fluctuating between Rs. 2.50 and Rs. 2.75 while a kilogramme of dressed chicken comes at Rs.80, with prices rising to Rs.100 in some areas.

The high prices now are attributed to low production and high cost of feed, including maize and soya.

Andhra Pradesh is the leading producer of eggs in the country with an output of 45 million eggs a day. In the last few weeks production has gone down by 20 per cent, says National Egg Co-ordination Committee Executive Member D. Sudhakar.

The cost of feed has shot up recently. Corn accounts for more than 80 percent and soya, 15 percent of the feed component.

Corn prices have increased 40-60 percent in recent weeks.

The only way to bring down high prices of egg and broilers is to exclude corn and soya from forward trading, said Sudhakar.