Aadi cracks up egg price by Rs 1 in a month, Namakkal poultry sector faces heat

New Indian Express

3 days ago

NAMAKKAL: The Namakkal poulty sector is feeling the chill wind of a drop in egg price as the rate per unit has dropped by nearly Rs 1, thanks to disruptions in demand and supply caused by the ongoing Sawan festival (also called Shravan) in North India. The sector is bracing itself for more loss as the 'price is expected to fall a little more' in the foreseeable future.
According to the National Egg Coordination Committee, the price per egg in Namakkal on July 1 stood at Rs 5.75. As of July 24, it has come down to Rs 4.80 – a fall of nearly Rs 1 within a few weeks.
The fall in consumption during this religious period (Sawan) has triggered a chain reaction across egg-producing states, forcing Namakkal's poultry industry to reduce prices.
The Sawan month, which lasts from mid-July to August, is a time of religious observance across many northern states, during which people avoid consuming meat and eggs. The situation continues with festivals such as Nag Panchami and Janmashtami, which also fall within this period and contribute to less consumption of non-veg food.
Andhra Pradesh (AP), the country's top egg producer, is the primary supplier to northern states. With demand falling during Sawan, AP producers have slashed prices drastically, even below production cost, to avoid piling up of stock.
When prices drop in AP, their eggs begin entering southern markets like Chennai, Bengaluru, and Kerala – all key buyers of Namakkal's eggs. As buyers shift to AP eggs for cost reasons, Namakkal traders too are forced to reduce their prices to stay competitive.
'From mid-July to August, every year the price of eggs sees a significant drop,' Vangili Subramanian, president of the Tamil Nadu Egg Poultry Marketing Society, said, adding that 'when AP reduces prices due to fall in demand in the North, southern markets start buying from them instead of us, and that hits Namakkal hard'. The current production cost per egg ranges between Rs 4.50 to Rs 4.75, leaving very little margin for producers.
'The price is expected to fall a little more,' Vangili said. 'If the price per egg drops to Rs 4.50 or lower, it will go below our production cost, and we will incur severe losses,' said C Sasikumar, a local poultry owner in Namakkal.