In a significant market shift, consumers across Andhra Pradesh are witnessing a substantial drop in the prices of eggs and broiler chicken, with reductions ranging from 20% to 30% following the recent festive season. This price correction comes after weeks of stable rates and is primarily attributed to a combination of increased poultry production and a noticeable decline in consumer demand.
Price Trends: From Festive Highs to Current Lows
During the early days of January, coinciding with the Sankranti festival, demand for poultry products surged, driving prices to elevated levels. At that time, skinless chicken was retailing between ₹300 and ₹320 per kilogram, while boneless broiler chicken commanded even higher prices, ranging from ₹500 to ₹600 per kilogram. Eggs were selling at approximately ₹8 per piece, reflecting the peak festive consumption patterns.
Post-Festive Cooling of Prices
By January 30th, a marked cooling in prices was observed across many parts of the state. Broiler chicken prices have now settled in the range of ₹260 to ₹280 per kilogram, representing a significant decrease from the January highs. Similarly, egg prices have dropped to between ₹6 and ₹7 per piece, making these protein sources more affordable for households.
Factors Behind the Price Decline
Meat traders and industry observers point to multiple factors contributing to this downward price trend. Consumption patterns have shifted dramatically in the last week of January compared to the festive weeks, with demand for poultry products experiencing a noticeable slump.
Specifically, the demand for eggs from bakeries – which typically remains high during the cake-making season from December to mid-January – has now dropped by approximately 50%. This seasonal adjustment in consumption has created a supply surplus in the market, putting downward pressure on prices.
Consumer Relief and Farmer Concerns
While consumers have welcomed this price reduction as a relief from the high costs during the festive period, poultry farmers are reporting financial losses. The sudden drop in prices, coupled with increased production costs, has squeezed profit margins for those involved in poultry farming operations.
Contrast with Other Meat Products
Interestingly, this price decline has not extended to all meat categories. Mutton and chevon continue to maintain their price levels at around ₹1,000 per kilogram, while country chicken meat remains priced between ₹800 and ₹1,000 per kilogram. Country eggs are still selling at approximately ₹15 per piece.
The stability in these categories is attributed to lower production volumes and consistently high demand, creating a different market dynamic compared to the commercial poultry segment.
Future Market Outlook
Traders anticipate that the demand for eggs may experience further softening in the coming weeks. Historical patterns suggest that February typically sees reduced egg consumption as consumers shift toward more readily available vegetable alternatives.
Additionally, with Ramzan expected to begin around February 18th, traditional spending patterns during this period may further impact egg demand. Consumers observing the fast often allocate more of their food budget toward traditional Iftar items such as dates and chickpeas, potentially reducing expenditure on eggs and poultry products.
The current market situation in Andhra Pradesh highlights the delicate balance between production, seasonal demand, and consumer preferences in determining food prices across different segments of the protein market.
