AP Poultry Industry in Turmoil as Egg Prices Crash by 40%
In a severe setback for poultry farmers in Andhra Pradesh, the wholesale price of eggs has plummeted nearly 40%, creating a financial crisis across the sector. According to industry reports, the price has dropped from ₹660 per 100 eggs in January to just ₹400 currently, equating to approximately ₹4 per egg. This sharp decline has triggered widespread distress, with farmers facing mounting losses and an uncertain future.
Daily Losses Mount to Rs 4 Crore Amid Supply Glut
The National Egg Coordination Committee (NECC) Vijayawada Zone chairman, P Srinivasa Rao, revealed that the industry is incurring losses of ₹4 crore per day due to the price crash. Compounding the issue, the price of cull birds (layers) has also fallen sharply, from ₹100 to ₹60, further squeezing profit margins for poultry operators. Traders attribute this downturn to a combination of factors, including a halt in exports to Gulf nations, reduced local consumption during the Ramzan season, and the Lent period observed by Christians.
Andhra Pradesh's Egg Production and Distribution Network
Andhra Pradesh is a major egg-producing state, generating about 4 crore eggs daily from nearly 750 poultry farms. Of this output, 1.75 crore eggs are consumed locally, with allocations to Anganwadi centres and government schools, while the remaining 2 crore eggs are exported to states such as West Bengal, Bihar, and the Northeast. Rao explained that although AP eggs are not directly exported to Gulf countries, the crash in the Namakkal market—which supplies Gulf exports—has created a ripple effect nationwide, leading to excess supply and weak demand in local markets.
Farmers Forced into Panic Selling Below Cost
Currently, farmers are resorting to panic selling, with eggs being sold at ₹3.80 each, below the wholesale paper rate of ₹4. This results in a loss of ₹1 per egg for producers. With production costs, including feed and other inputs, estimated at ₹5 per egg, the situation has become unsustainable for many in the industry. The gap between wholesale and retail prices remains stark, as consumers continue to pay ₹5.50 per egg in retail markets, despite the wholesale slump. Earlier this year, retail prices had soared to ₹8–9 per egg, highlighting the volatility in the market.
Seeking New Export Markets for Recovery
In response to the crisis, the AP State Poultry Federation, represented by vice-president Tummala Kutumba Rao, is actively exploring alternate export markets. Potential destinations include Malaysia, the Philippines, Sri Lanka, the Maldives, and various African countries. Rao emphasized that price stabilisation largely depends on the resumption of exports to Gulf nations, which have traditionally been a key outlet for Indian poultry products.
Recent Price Trends in Key AP Cities
Recent data illustrates the extent of the price decline across major cities in Andhra Pradesh:
- Vijayawada: March 1 (₹500 per 100 eggs), March 7 (₹400 per 100 eggs)
- Visakhapatnam: March 1 (₹465 per 100 eggs), March 7 (₹420 per 100 eggs)
- Chittoor: March 1 (₹513 per 100 eggs), March 7 (₹443 per 100 eggs)
This widespread drop underscores the urgent need for intervention to support the struggling poultry sector and prevent further economic damage to farmers.
