Record High Egg Prices in Namakkal Amid Festive Season
The price of table eggs in Namakkal district, one of India's major egg production hubs, has remained steady at Rs 6.10 for nine consecutive days since November 21, according to the National Egg Coordination Committee (NECC). This represents an all-time high price point for eggs in the region, driven by increased festive demand and declining production during the winter season.
Factors Driving the Price Surge
NECC officials have identified multiple factors contributing to this unprecedented price stability at peak levels. Cold weather conditions in northern states have significantly increased consumption, while bakeries across the country are stocking up on eggs to meet Christmas and New Year production requirements for sweets, cakes, and other delicacies.
K Singaraj, NECC Namakkal zone chairman, explained: "Cold weather and increased consumption in northern states have contributed to the price rise. The price might rise further in December as bakeries get bulk orders."
Price Evolution and Production Challenges
Data from NECC reveals a steady climb in egg prices throughout November. The price ranged between Rs 5.05 and Rs 5.40 during October before beginning its upward trajectory. From November 5, prices increased by at least five paise daily, reaching Rs 6 on November 17 and finally peaking at Rs 6.10 on November 21, where it has remained unchanged.
The production challenges are significant. Daily egg production, which typically stands at six crore eggs, drops to approximately 4.5 crore eggs during the rainy season and winter months. This seasonal reduction, combined with increased demand, has created a perfect storm for price escalation.
Export Demands and Regional Dependencies
The supply situation is further complicated by export requirements. Close to one crore eggs are exported daily to various international destinations, including Gulf countries, putting additional pressure on domestic supply.
The demand-supply gap is particularly evident in southern markets. M Sekar, an egg trader in Namakkal, highlighted the situation in Bengaluru: "The city alone needs 90 lakh eggs per day. However, egg production in Karnataka dropped due to winter, and traders in Bengaluru were able to get only 27 lakh eggs. They depend on Namakkal poultry farmers to meet the rest of the demand."
Industry Response and Future Outlook
Bakery owners are feeling the pressure as they prepare for the Christmas season. Salem-based cake manufacturer M Suresh Kumar noted that bakeries are receiving bulk orders from Christian communities ahead of Christmas celebrations. "Bakery owners were stocking eggs to meet production needs despite slim profit margins as NECC has forecast further price rise," he added.
While consumers face higher prices in the short term, there is relief expected in the new year. NECC officials predict that prices will ease in January as production normalizes and festive demand subsides. However, December may see further price increases as the Christmas baking season reaches its peak and cold weather continues to drive consumption in northern regions.
