A significant drop in egg prices in Namakkal, a major poultry center in India, has raised worries among farmers due to substantial financial losses. Within just three days, egg prices have fallen by 40 paise, sparking concerns about a prolonged decrease in demand. Namakkal, known for producing over seven crore eggs daily, plays a crucial role in supplying eggs not only in Tamil Nadu but also across various Indian states and key export markets.
The decline in egg prices is attributed to weakening demand, partly influenced by global uncertainties, including tensions involving the United States, Israel, and Iran. Export orders have slowed down, and domestic consumption has not been robust enough to absorb the surplus, prompting the National Egg Coordination Committee (NECC) to hold an urgent meeting in Namakkal to evaluate market conditions. In response, the committee decided to reduce prices to stimulate demand and clear excess stock, leading to a drop in the benchmark price from 445 paise to 405 paise.
Farmers are expressing concerns over the current unsustainable price levels, as production costs far exceed the prevailing market rates. Industry estimates suggest that producers are facing losses of nearly Rs one per egg, translating to an approximate daily loss of Rs 7 crore for the region with a daily egg production exceeding seven crore. There are fears among poultry farmers that the situation may deteriorate further if demand does not recover promptly, with calls for government intervention or support to stabilize prices and safeguard the sector.
Despite the decline in farm-gate prices, retail egg prices in Namakkal remain stable at around Rs 85 per tray, while chicken prices in nearby Palladam remain firm at Rs 129 per kilogram. Observers in the industry emphasize that the upcoming days will be critical in determining whether prices stabilize or continue to decline, with demand recovery being a pivotal factor.
