SALEM: Amid the ongoing West Asia war, around 3.5 crore eggs exported from Namakkal to the United Arab Emirates (UAE) are stranded at sea, and the disruption of exports has destabilised the market and forced poultry farmers to sell eggs far below the official price.
Exporters said about 70 containers, each carrying nearly five lakh eggs, were shipped on February 28. However, the ship has not reached the destination and remains anchored at sea.
At an estimated value of Rs 4.80 per egg, the stranded consignment is worth nearly Rs 16.8 crore.
The halt in exports has sharply affected the poultry industry in Namakkal, one of the country’s largest egg-producing hubs. The region produces around six crore eggs daily, of which 75 lakh to one crore eggs are usually exported, mainly to the UAE and other Gulf countries depending on demand.
With exports coming to a standstill and no fresh orders from western markets, eggs are piling up in farms and warehouses. Farmers say they are now forced to sell eggs for as low as Rs 3.50 apiece, well below the Rs 4.30 apiece rate fixed by the National Egg Coordination Committee (NECC) Namakkal.
Jahan R, secretary of the Egg and Poultry Products Exporters Association, said the farmgate price has fallen by about 50 paise in the past week due to uncertainty in international markets. “The production cost of an egg is around Rs 5, including feed and other expenses. Farmers are now selling eggs at around Rs 3.50, resulting in a loss of Rs 1.50 per egg,” he said.
With the region producing about seven crore eggs daily, poultry sector could be facing losses of around Rs 10.5 crore every day, he added.
Exporters say they are in discussions with shipping companies to explore alternative routes to reach the UAE. However, shipping lines are reluctant to take the risk, they added.
“If the stranded eggs are brought back to the domestic market, they may have to be sold at 50-70% lower than the market price, as export consignments are packed with printed production and expiry dates and transported through a cold-chain system. There are also no new markets that can take the surplus, while existing markets continue to import only their usual volumes. Orders from some African countries have also slowed during the Ramadan season,” Jahan said.
The situation is expected to worsen further with school holidays approaching, as eggs supplied for the noon meal scheme will temporarily stop.
Saravana Kumar NK, a poultry farmer in Namakkal said eggs have a maximum shelf life of about 15 days in open conditions, and during summer it may reduce to around 10 days. “When exports stop and eggs pile up, farmers are forced to sell at very low prices to avoid spoilage,” he said.
He added that egg prices generally decline during summer, but the sharp fall this year has been unexpected.
VS Balasubramaniam, assistant general manager of the National Egg Coordination Committee (NECC), Namakkal zone, said egg exports have almost come to a halt. “Earlier, an average of 50 lakh eggs were exported daily, but now exports have dropped to around five lakh eggs a day,” he said.