November 18, 2008
India Poultry Weekly: Egg prices soar on various factors (week ended Nov 15, 2008)
An eFeedLink Exclusive
Price Summary
There was a downward trend among broiler prices in India, with price range of Rs. 2 to Rs. 15 per kg. However, in Bangalore, there was a positive trend of Rs. 3 as compared to last week's price.
After breaking all previous records of broiler prices in Delhi, rates came down drastically to Rs. 15 per kg and settled at a price range of Rs. 55 per kg.
Positive trend in egg prices was seen, as all markets were up in price range of Rs. 09 to Rs. 12 per 100.
The parent stock which touched Rs. 4,500 last week, recovered Rs. 15 per bird and reached up to Rs. 4,800 per 20 birds on Saturday (November 15), traded at Rs. 240 each in the concluding week.
Price of layer bird again went up by Rs. 100 and settled at Rs. 1,100, traded at Rs. 55 per bird.
Chick prices in North India were almost stable and traded at same price as on last week at about Rs. 19 per chick.
Market Analysis
The early onset of winter, higher prices of vegetables and cut in egg production in Namakkal have sent egg prices soaring across the country, according to National Egg Coordination Committee (NECC).
"Prevailing cold wave across the country has increased egg consumption, pushing up prices," an NECC spokesperson said. More than 15 million eggs produced in Namakkal zone are supplied across the country every day.
NECC has fixed procurement prices at Namakkal farms at Rs. 2.25 a piece. Eventually, the price increase in Namakkal zone has impacted egg prices across the country. Currently, egg prices in Delhi are fixed at Rs. 2.47 an egg, in Mumbai at Rs. 2.44 and in Hyderabad at Rs. 2.22.
With Muscat lifting its ban on Indian eggs, the move is expected to increase demand for egg products in the domestic market.
Sources said egg prices are likely to go up further and then stabilize during the next week on the onset of Sabrimala season.
On the other hand, a rise in vegetable prices has led to additional demand for eggs. Vegetable prices, particularly in the South, have skyrocketed in the last couple of weeks owing to damage due to rains, lower arrivals and festival season.
Exporters bearish on corn export prospects
Corn exporters are bearish on export prospects in the short-term but are expecting a pick-up from around December.
On the other hand, with arrivals beginning to flood the markets, the prices have started crashing.
"Corn exports have ground to a halt owing to a slew of reasons. Fall in commodities prices due to credit squeeze is one reason, then the fall of the rupee against the dollar has meant that there is no parity," said industry sources.
"We are currently buying stocks to build inventories. Some of the arrivals in the market have higher moisture content," said Mr. M.Rajesh, managing director, Rajathi Group of Companies.
Market forecast
Corn demand on the rise from poultry and starch industry, despite increasing arrivals. Export to neighboring nations also support prices.
Reduction in rabi acreage supports prices as current dry weather is delaying sowing.
Soy prices may ease due to increase in fresh arrivals amidst steady demand.
In the week ahead, due to arrival of winter season, demand in the market will increase, broiler and eggs prices may increase slightly compared to this week's level.
|
Weekly transacted prices of broilers in India for 2008 | |||
|
Cities |
Prices as of Nov 8 |
Prices as of Nov 15 |
Price change |
|
1. Mumbai |
53 |
55 |
2 |
|
2. Pune |
53 |
55 |
2 |
|
3. Nashik |
52 |
54 |
2 |
|
4. Surat (Gujarat) |
56 |
58 |
2 |
|
5. Delhi |
70 |
55 |
-15 |
|
6. Kolkata |
54 |
50 |
-4 |
|
7. Hyderabad |
49 |
46 |
-3 |
|
8. Bangalore |
47 |
50 |
3 |
|
9. PalladamT.Nadu |
47 |
47 |
Stable |
|
10. Palladam Kerla |
47 |
47 |
Stable |
|
11. Namakkal |
44 |
44 |
Stable |
|
12. Bhopal |
56 |
56 |
Stable |
| Prices are representative and for reference only. US $ 1 = Rs. 49.720 (Nov 18, 2008) | |||
| Note: The 12-city average includes Mumbai, Pune, Nashik, Surat, Delhi, Kolkata, Hyderabad, Banglalore, Palladam (Kerala & Tamilnadu), Namakkal, & Bhopal. |
