June 2, 2008

India poultry prices increase on short supply
    

India's poultry industry is facing a sharp increase of demand following its production cut back in January, due to rising prices of vegetables and pulses.

Poultry prices have jumped in the past month and it could get higher due to supply shortage.

In Mumbai, wholesale egg price rose 23.3 percent to Rs201 per 100 eggs, while chicken prices climbed 9.4 percent to Rs58 per kg.

Egg production has dropped to 110 million eggs per day from 120 million eggs in January, said Vasant Kumar, member of the National Egg Coordination Committee (NECC).

Poultry farmers decided to reduce their production after some states and overseas markets banned Indian poultry products due to bird flu outbreaks.

Production is unlikely to increase in the next two months, but demand will grow due to a likely shortage of vegetables and fish, said Kumar, who added that the poultry industry would be passing on the increased production costs to consumers.

India is the world's second largest egg producer and the fourth largest chicken producer, according to NECC.