Egg prices go up as production falls, demand drops

Mangaluru: Egg prices in Mangaluru have begun rising steadily over the past week after a sharp fall in March triggered by the West Asia crisis, though traders say weak local demand continues to weigh on the market.On Friday, the wholesale price in Mangaluru stood at Rs 6.20 per egg, while the retail price was Rs 7. In the second week of March, prices had dropped to around Rs 5.40 (wholesale) after shipments to Gulf countries were abruptly disrupted. The Gulf region is a major export market for eggs from Karnataka and neighbouring states.Suppliers said prices are now recovering mainly because production has fallen by 20% to 30%, largely due to extreme heat. At the same time, exports to Gulf and other countries, which had come to a halt during the crisis, have resumed gradually.MP Satish Babu, zonal chairman of the National Egg Coordination Committee, said the market is slowly recovering from the earlier slump. He said the fall in prices during the West Asia crisis had hurt the sector and that although rates are now improving, local demand remains weak. Production in the region has dropped by around 20% due to severe heat conditions, while exports have resumed at about 50% capacity."Before the crisis, the region exported between 80 lakh and one crore eggs a day to Gulf destinations. Now, shipments have restarted only to a few Gulf countries, and exporters are paying nearly double the freight charges. Election-related demand in some states has offered limited support to the market in recent weeks," he said.Alwyn Pinto, president of the DK Kannada Egg Suppliers Association, said summer has reduced egg consumption. Demand has also dipped as many eateries have shut temporarily or scaled down menus due to the LPG crisis. Supplies to Udupi have fallen sharply, from about 350 trays a day earlier to just 150 trays now. The absence of egg supply under the midday meal programme is another reason for weak demand in the local market, he added.