Egg Prices Down: Poultry farmers of Namakkal (Tamil Nadu), known as ‘Egg City’, are in a lot of trouble these days. They have to sell eggs at very low prices in the city. The ongoing tension in Western Asia has affected the export of eggs here. About 35 million eggs exported to the United Arab Emirates (UAE) are stuck midway.

On February 28, about 35 million eggs loaded in 70 containers left for the Gulf countries, but due to the ongoing war in the Red Sea and the Middle East, the ships are stuck midway. There were about five lakh eggs in each of the 70 containers. The estimated price of each egg is Rs 4.80. According to this, goods worth about Rs 16-17 crores are at stake. On top of that, the cost of container rent and fuel is separate. The halt in exports has badly affected the poultry industry in Namakkal.

Why are farmers facing losses?

Namakkal handles 95 percent of India’s total egg exports. From here, eggs are sent on a large scale to Gulf countries like Oman, Qatar, Bahrain, Kuwait. 6-7 crore eggs are produced daily in Namakkal. Of these eggs, which were supposed to go abroad, are now being deposited in the domestic market. This means that the arrival of eggs at the domestic level has suddenly increased and stock after stock is getting accumulated.

Now since the shelf life of eggs is also very short. Especially when the temperature increases, eggs spoil quickly. In such a situation, farmers are forced to sell them at the lowest price. Where the cost of one egg is around Rs 4.5-5. At the same time, now these are being sold for Rs 3.5, due to which the farmers are directly incurring losses. If exports do not start soon, many small poultry firms may be on the verge of closure.

Losses running into crores

According to media reports, Jahan R, Secretary of Egg and Poultry Products Exporters Association, said that due to uncertainty in the international market, the farmgate price has fallen by about 50 paise last week. He said, “The production cost of one egg is around Rs 5, which includes feed and other expenses. Farmers are now selling eggs at around Rs 3.50, causing a loss of Rs 1.50 on each egg.” He said that around seven crore eggs are produced daily in this area, due to which the poultry sector may suffer a loss of around Rs 10.5 crore every day.

Exporters are talking to shipping companies to find other routes to reach UAE. However, he said shipping lines are hesitant to take the risk.

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