November 16, 2023

 

Egg shortage hits Karachi, Pakistan, prices surge

 

Karachi, the capital city of Sindh province, Pakistan, is grappling with an artificial shortage of eggs, leading to a spike in prices as supplies to local bakeries and shops have dwindled significantly, The Express Tribune reported.

 

Despite an officially set price of PKR 290 per dozen, eggs are being retailed for as much as PKR 360 per dozen, causing concern among consumers.

 

The city is witnessing eggs being sold at inflated rates, ranging from PKR 340 to PKR 360 per dozen in various areas. This disruption in the supply chain to bakeries and shops has prompted a closer look at the factors contributing to the scarcity.

 

Small-sized eggs are being sold at prices comparable to larger ones, despite their lower weight. Industry insiders attribute the crisis in the poultry business to challenges over the past two years, including fluctuating dollar values affecting imported feed costs and clearance issues at ports.

 

Rising costs of poultry, medicines, wages, and transport have significantly increased the production cost of eggs. Investors, facing losses in poultry, have diverted their focus to other sectors, resulting in reduced investments in egg production.

 

Wholesale prices of eggs, categorised by size, stand at PKR 280 per dozen for small-sized eggs and PKR 330 per dozen for larger ones. However, retailers, particularly milk shops and bakeries, are selling small-sized eggs at a higher rate of PKR 340 per dozen, exacerbating the situation.

 

Retailers report a 50% drop in the supply of eggs from farms, creating a substantial gap between demand and supply ahead of the winter season. This reduced supply has led to the current surge in egg prices.

 

In the wholesale market, the price of 30 dozen eggs has surpassed PKR 9,900, with eggs being sold at PKR 320 to PKR 330 per dozen. Poultry farmers reportedly flout the prices set by the Karachi commissioner, selling eggs at arbitrary rates.

 

While farm eggs witness a significant price increase, organic eggs offer a more economical alternative, priced at PKR 40 to PKR 45 per egg. But sources within the poultry industry point to hoarding practices as a major factor driving the price surge, with eggs being stockpiled months in advance for winter, causing market disruptions.

 

-      The Express Tribune