NAMAKKAL: Driven by strong domestic demand, coupled with a slight dip in production, egg price in Namakkal has climbed to a record high of `6 per piece at the farm gate for the first time on Tuesday.
While the price rise has added some pressure to its exports, industry representatives say the overall impact remains limited. Restaurants in the region also maintain that the increase has not affected food prices yet.
K Singaraj, zonal chairman of the National Egg Coordination Committee (NECC), said this is the first time eggs have hit the Rs 6 mark in Namakkal, noting that last year’s highest rate was Rs 5.95.
“As of November 19, the price stands at Rs 6.05. Consumption always goes up during winter,” he said. Namakkal produces 6.5 crore-7 crore eggs a day, with 80 lakh-one crore being exported. He admitted there has been a marginal slowdown in exports as India faces competition from countries like Turkey when domestic prices rise.
P V Senthil, general secretary of the Livestock and Agri Farmers Trade Association, said the upward trend is also influenced by a slight drop in production due to climatic variations and bird culling, which has reduced output by nearly 50 lakh eggs per day.
“This is a usual trend every year from November to January. Although the Karthigai Deepam and Sabarimala pilgrimage season causes a brief lull, demand picks up sharply during Christmas and New Year.”
Namakkal’s pricing is closely tied to Hyderabad, revealed Senthil, adding, “We don’t go more than 30 paise above the Hyderabad rate. If we do, big cities like Chennai will start buying from there.”
Further, Senthil said the impact on exports is expected to be mild. When the international price of a 360-egg carton crosses $30, India faces a slight decline in shipments as lower-priced competitors gain an advantage. At present, the rate stands at $32.
Exports to Oman, UAE, Qatar, Bahrain, Maldives and African markets continue but at reduced volumes.
On the impact on hotels, N Arulmurugan of the Namakkal City and Taluk Hotel Owners’ Association said menu prices have not been revised yet. “As long as the farm-gate price stays below Rs 6.50, we don’t expect any change in the prices of egg-based dishes,” he said.
He stated that the rise is unlikely to persist long enough for restaurants to consider price revisions, adding that the price of some items may rise by Rs 2, while street-side vendors, who work on thin margins, may be quicker to increase their prices.