The prices of eggs have increased in many big cities of India, now the price of an egg usually ranges between Rs 8 to Rs 10. This once cheap staple food has now become expensive, in what many are calling “eggflation”. The reason for the increase in prices is the increasing demand for protein-rich diets during the winter months and disruptions in the supply chain. In an article in India Today dated December 25, it was reported that compared to August and September, prices in the markets had increased by 25 to 50 percent. Egg prices have reached Rs 10 per piece in New Delhi, while in Hyderabad and Mumbai they are around Rs 8 per piece. Prices are slightly lower in Chennai. Due to increasing demand and limited supply, home delivery through online grocery platforms has also become expensive.
Supply and wholesale rates
According to data from the National Egg Coordination Committee (NECC), prices from farm to consumer have been rising continuously since August. In tier-1 cities, the price of 100 eggs has increased from Rs 550 to Rs 700. Wholesale rates in states like Namakkal in Tamil Nadu and Hospet in Karnataka are still around Rs 640-645 for 100 eggs.
effect of increasing demand
About 5.5 to 6 crore eggs are consumed daily in Uttar Pradesh. To meet this huge demand, around 4 crore eggs are imported from other states. This excess demand continues to put pressure on prices.
Supply-Side Challenges
The rise in egg prices is not just due to demand. Transportation costs, production problems, and the spread of poultry diseases are also contributing to higher prices. The outbreak of diseases in poultry farms in Andhra Pradesh and Tamil Nadu has affected supplies in Maharashtra. Higher consumption in colder months also contributes to higher demand.
increased production costs
The prices of poultry feed like corn and soybean are increasing every year. Due to this, small farming activities have stopped, due to which the production has reduced. However, egg prices in India are still quite low compared to global standards. The price of an egg in America, Britain and Germany is between Rs 30-40. Among Asian countries, only Pakistan and Bangladesh have prices at par with India.
effect of changing weather
Heavy rains in southern India damaged maize crops, causing poultry feed prices to rise. Along with this, due to fungal infection the supply of eggs has decreased by about 7-10%. This is the reason why egg prices across the country have now become a challenge for common consumers.