Wholesale Egg Prices Plummet in Karnataka, But Bengaluru Consumers See No Relief
In a surprising turn of events, egg prices have experienced a significant drop in wholesale markets across Karnataka, largely attributed to export disruptions stemming from the ongoing conflict in West Asia. However, this decline has not translated into savings for consumers in Bengaluru and its neighboring districts, where retail prices remain stubbornly high.
Retail Prices Hold Steady Despite Wholesale Dip
When TOI conducted inquiries across Bengaluru, it was found that a single egg is still being sold for between Rs 6 and Rs 7.5. This stands in stark contrast to the wholesale price reported by the National Egg Coordination Committee (NECC), which stood at Rs 4.8 in Bengaluru on Friday. This wholesale figure represents a slight increase from the previous days, where prices were Rs 4.7 and Rs 4.6, but it remains significantly lower than retail rates.
Customers have voiced their frustrations over this disparity. Hassain, a resident of Hennur, expressed, "As a customer, I feel the benefit of the lower wholesale price should reach us too. Egg prices usually keep going up, but now they are lower, we should also benefit." Similarly, Shyamala James from Indiranagar noted, "Even though the wholesale price of eggs is around Rs 4.8, retail prices in Bengaluru vary from shop to shop. If stores followed a consistent price, it would make buying from local shops easier and increase consumer trust."
Supply Chain Dynamics and Export Halts
The root cause of the wholesale price drop lies in halted exports. Prasanna N, managing partner at Nandini Poultry Breeding Farms and secretary of the Karnataka Poultry Farmers and Breeders' Association, explained, "The price of eggs has come down by almost Rs 3... All our exports have halted due to the unavailability of flights." Eggs from Karnataka are typically exported from regions like Mysuru, Davanagere, and other North Karnataka districts to countries including Oman, Kuwait, and Qatar. With these exports stopped, surplus supply has driven wholesale prices down.
Vaisnav, a wholesale dealer, added context to the supply situation: "We get our stock usually from Tamil Nadu. As of Friday, the wholesale price was Rs 4.8. Initially, when the tensions began, we got lower stock than requested; now, we are getting full stock."
Production Challenges and Future Price Trends
Despite the current low prices, there are concerns that they may not last. V Sheshanarayan, sales promotion officer at NECC, highlighted that egg production has dropped slightly in response to the price fall. In Tamil Nadu's Namakkal, a major egg-producing region with 7 crore eggs daily, farmers have culled chickens due to the price drop and adverse summer conditions, leading to decreased production. "Production dropped in Namakkal after they started culling the chickens, and because of the bad summer, chickens are dying in large numbers, leading to decreased production. They have also started moulting, a process in which the laying of eggs is purposefully delayed to manage existing stock," he said.
This production decline in Namakkal impacts Bengaluru significantly, as the city consumes between 80 lakh to 1 crore eggs daily, with close to 45 lakh supplied from Namakkal alone. Sheshanarayan warned that these factors could slowly push prices back up in the coming months.
Middlemen and Consumer Impact
Sheshanarayan also shed light on why consumers are not benefiting from the wholesale price drop: "It is always the middleman who tries to get the benefit; neither the farmer nor the consumer gets it. For instance, in Mysuru, the wholesale price is Rs 4.85. Eggs are bought from the farmer at Rs 4.5 apiece, but in the market it is sold at Rs 6 to Rs 6.5." He advised that end customers should understand the prices and buy accordingly from retail stores, noting that retail shops cannot increase prices much beyond the running wholesale price.
Nirmala B, a resident of Hulimavu, emphasized the importance of fair pricing: "Eggs are an important and affordable source of nutrition for many families, so it would be good if the drop in prices was passed on more fairly to end users."
Potential Impact on Chicken Prices
Looking ahead, the export halt could have broader implications. Prasanna N mentioned that every month, 50 lakh hatching eggs are exported to countries like Oman, Kuwait, and Qatar, but this has not occurred this month. If this trend continues, and all such eggs hatch within Karnataka, the price of chicken could also see a decline in the future, offering potential relief to consumers in other areas of the poultry market.
