Mumbai Food Prices Shift as Middle East Export Halt Impacts Eggs and Edible Oil
The ongoing transportation impasse, triggered by the Israel-Iran conflict, has severely disrupted exports to the Middle East, leading to notable fluctuations in the prices of essential food items in Mumbai. While wholesale egg prices have seen a marginal decline due to thwarted exports, retail rates have not followed suit, creating a disparity in the market. Concurrently, edible oil costs are rising swiftly as imports dwindle, adding to the economic strain on consumers.
Egg Prices: Wholesale Drop vs. Retail Stagnation
In the wholesale market, egg prices have fallen significantly. Abdullah Hanif Dhaga of Isa Egg Mart in Jogeshwari reported, "Export of eggs to the Middle East has stopped owing to the war. So the wholesale price has fallen from Rs 750 per 100 eggs to Rs 480. In fact, it fell to Rs 450 last week. Within a month and a half, the market is down by Rs 300." This drop is attributed to the halt in Gulf exports, which has diverted more eggs to the local market.
However, retail prices have not decreased correspondingly. A citywide survey by TOI found that most retailers continue to charge between Rs 66 and Rs 80 per dozen. Only in Borivli-Dahisar was the rate Rs 60 on Tuesday, while an egg store in Kalyan reduced prices from Rs 160 for two dozen to Rs 150 this week. Local shops maintained rates of Rs 6.50 to Rs 7 per egg, and buyers in Navi Mumbai paid Rs 70 to Rs 75 per dozen, only slightly lower than the previous Rs 75 to Rs 80.
Factors Driving Lower Demand and Prices
Traders cite multiple reasons for the reduced demand and subsequent price adjustments. Abdul Rahim of House of Eggs noted, "Prices have also decreased due to change of climate and decrease in demand." Altaf Ahmed Khan of Ahmed Eggs Merchant added, "Rates have reduced due to lower demand caused by the concurrent Ramzan and Lent fasts. There is less demand for eggs at breakfast. Plus, exports to the Gulf have halted, diverting more eggs to the local market."
Additionally, the disruption in LPG supply has led many eateries to stop serving boiled eggs, further shrinking consumption. The onset of summer typically sees a fall in egg consumption, and the upcoming Chaitra Navratra on March 19 will see more people avoiding non-vegetarian food, potentially reducing demand even further.
Edible Oil Prices on the Rise
In contrast to eggs, the price of edible oil is rising swiftly due to hampered imports caused by the Gulf war. Sunflower oil has become Rs 15 costlier per litre, while mustard oil has climbed by Rs 10. Blended oils have also inched upward on online marketplaces, with prices rising from Rs 880 for a five-litre can to Rs 1,000.
Traders attribute this hike to disruptions in sunflower oil imports. Nilesh Veera, director of the Mumbai APMC grain market, explained, "Wholesale rates went up by Rs 5 per litre in the past few days, but then dropped slightly. So the hike is now Rs 2-3 per litre which raises retail prices proportionately." He ruled out domestic shortages, noting that edible oils are sourced from diverse countries including Indonesia, Malaysia, Thailand, Brazil, Argentina, Russia, Ukraine, and Nepal, not only conflict zones.
Grain Prices Remain Stable
Amid these fluctuations, foodgrains such as basmati rice have become cheaper due to weaker exports and higher domestic availability. Wholesaler Bhimji Bhanushali emphasized, "We keep telling retailers not to create war hype since the prices of grains have remained constant." This stability offers some relief in an otherwise volatile market.
The combined impact of the Middle East export halt and seasonal factors is reshaping Mumbai's food economy, with consumers facing mixed trends in essential item prices.
