Egg prices reached a fresh peak across coastal and other districts on Friday, with retail rates climbing to Rs 8–8.5 per egg and wholesale prices touching Rs 7.6. Just a week ago, wholesale prices stood at Rs 6.8, traders reported, marking a sharp upward shift in a short span.
Reasons Behind the Surge
Industry sources attributed the surge to a combination of lower production, higher transport costs, and a rise in demand. Vendors said the steady increase is straining household budgets and squeezing margins for small eateries and roadside sellers that rely on eggs as a low-cost item.
Impact on Government Schools
The spike has also affected government schools. Teachers involved in meal programs said they are paying out of pocket to procure eggs, as the budget allocation remains capped at Rs 5 per egg, widening the gap between sanctioned rates and prevailing market prices.
Expert Insights
Satish Babu, zonal chairman of the National Egg Coordination Committee (NECC), explained that production had been cut earlier due to weak demand and export-linked disruptions. He cited reduced output and a fall in the number of birds as farmers scaled back operations when demand softened. Demand, he said, increased sharply after June, with schools reopening and higher individual consumption.
Babu also pointed to export dynamics tied to the Gulf region. He noted that exports had earlier been higher, and currently about 35% of exports to the Gulf have been restored. He added that supply cannot be scaled up immediately to match the sudden jump in consumption. India’s per capita egg availability is 106 eggs per annum, he said, rising significantly over the past decade but still not fully meeting demand. He also cited regulatory issues in Karnataka that have pushed some operators to shut farms.
Outlook
On the outlook, Babu said demand typically eases during the Ashada and Shravana months, when many consumers abstain from eggs, which could provide temporary relief.
Local Perspectives
In Mangaluru, prices remain higher than in many other districts due to dependence on supplies transported from around 400 km away, said Alwyn Pinto, president of the DK Kannada Egg Suppliers Association and head of Kanchana Ganga Trading. With limited local production and heatwave-related stress in producing areas, he said wholesale prices could rise to Rs 8 and beyond in the coming days. He noted that prices had dipped sharply in April, with eggs selling for under Rs 5, but have since reversed course. Prices are expected to ease from mid-August if supply conditions improve.
