KOCHI: Eggflation is hurting, and it is official: You can’t have your cake and eat it too. As supplies tighten, egg prices are scrambling northward, leaving home kitchens, bakeries and snack makers counting the cost.
In Namakkal, Tamil Nadu — the country’s largest egg hub and the principal supplier to Kerala — prices have risen by nearly Rs 1 to Rs 1.40 per egg over the last year. The surge is being driven by a seasonal spike in winter demand, coupled with steady export orders, thereby squeezing availability in the domestic market.
The ripple effects are already visible across Kerala’s food economy: From tea-shop snacks to bakery staples, egg-based items are on tenterhooks as input costs climb.
Wholesale data from Namakkal tells the story of a steady climb. In January, 100 eggs were priced at Rs 490.65. The rate rose to Rs 555.83 by June and touched Rs 623 by December. On December 31, the quoted price stood at Rs 640. In Kochi’s retail markets, eggs are selling at Rs 7 to Rs 7.50 apiece — almost Rs 1.50 to Rs 2 higher the previous Christmas season, when prices typically spike due to demand for cakes, pastries and festive preparations.
Kerala’s heavy reliance on supplies from outside the state has magnified the impact. According to a study published in the International Journal of Veterinary Sciences and Animal Husbandry, Kerala consumes around 560 crore eggs annually and procures nearly 300 crore of them, primarily from Tamil Nadu.
“Wholesale prices in Kerala are currently around Rs 7.20 per egg, compared to about Rs 6.80 during the same period last year. Retail rates have touched Rs 7.50 to Rs 8,” said C G George of Edathil Egg Stores, Kochi. “December is usually the peak season because of Christmas festivities. But this is among the highest rates we have seen in recent years.”
George pointed out that egg prices typically cool off during the summer months, reflecting clear seasonal fluctuations. “Consumption of milk, eggs and bread has risen sharply over the past decade because they are easy to procure and consume. Demand has increased manifold, but local production has not kept pace,” he said.
Namakkal alone produces around six crore eggs daily, underscoring Kerala’s dependence on the Tamil Nadu belt. “Kerala’s own production is inadequate and has not shown a significant increase,” George added. Rising input costs are another pressure point. “Feed prices are going up, which pushes up production costs for farmers. That inevitably reflects in higher egg prices.”
Despite the surge, traders note that eggs remain the most affordable source of non-vegetarian protein. “Compared to other protein sources, eggs are still the cheapest and most accessible across income classes,” George said.
For bakeries, however, the squeeze is real. Noushad M, managing partner of Kannur-based Bake Story Live Bakery, said egg prices are biting into margins during the peak season. “This Christmas, there is huge demand for dry cakes — plum cakes and other hard cakes like carrot and pineapple,” he said. “Egg prices have hurt us, with end prices rising by around Rs 2 per egg over the last few years.”
Small bakers and snack manufacturers say margins, already wafer-thin, are under fresh strain, forcing hard choices between absorbing the hike or passing it on to consumers. Traders warn that Kerala’s dependence on out-of-state supplies makes it especially vulnerable to price swings triggered by weather fluctuations, festive demand or export pulls.
According to the Basic Animal Husbandry Statistics 2024–25, Kerala produces around 251 crore eggs annually. Per capita availability stands at just 70 eggs a year — well below the national average of 106 — highlighting a structural gap that continues to keep prices on edge.