With each selling at 35 paise less than the production cost, the industry is making huge losses.
There has been a steep drop in the demand for eggs across markets because of the austere season, resulting in poor offtake by retailers.
This, in turn, has led to a drop in prices
. With no respite in sight, the industry leaders convened an emergency meeting a couple of days back in Hyderabad to discuss a way out.
They decided to cut production by 20 per cent, to align supplies with the lukewarm demand. They also plan to convince the firms to cull about 20 per cent of the birds in order to reduce egg production.
“We will have two benefits by reducing the production. While it helps bring stability to prices as the demand-supply equation changes, it will also help save money we spend on feed,” Subba Raju, a member of the National Egg Coordination Committee, told BusinessLine.
The country has about 24 crore layer birds, producing 20 crore eggs a day. About two-thirds of this capacity is in the South India, including 10 crore birds in Telangana and Andhra Pradesh.
Farmgate prices are ruling at ₹3.50, while the cost of production is ₹3.85 an egg. Egg retails at ₹4 a piece in Hyderabad.
“We are going to visit the firms in the poultry hubs such as Namakkal (in Tamil Nadu) and Hyderabad region to convince them on the importance of to reducinge the number of birds,” Subba Raju said.
Source : The Hindu Business Line