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Wholesale egg prices may decline in the coming days following a ban imposed by Oman on Indian poultry products.
The poultry industry finds it difficult to clear a backlog of almost 1.5-2 crore eggs everyday that has been caused by the ban and fears it could lead to further drop in prices. The wholesale egg price has been trimmed by 10 paise to Rs 2.30 this week.
Exporters from the country's egg hub, Namakkal, fear that Oman's move may worsen domestic and export prospects. “With table eggs and other poultry products going off the menu in many Gulf nations, we turned our focus towards new markets such as Afghanistan, Sri Lanka, [and] West African countries such as Monrovia, Angola, Free Town. But with this ban we are now very doubtful of our fortunes,” an exporter told Business Line .
Flu effect
The ban came into effect from March 27. One-third of India's poultry exports go to Oman - around 2 crore eggs a month. The ban was based on the OIE (World Organisation for Animal Health) norms. The ban will be lifted only three months after the OIE declares a country free from bird flu. The bar follows the flu's outbreak in Odisha.
“Whenever there is a bird flu outbreak — even in remote parts of the country — egg exports from this region suffer. We have long been pleading with the Union Government to introduce zoning mechanism to help us but it is yet to be done,” said Mr P. Selvaraj, Chairman, NECC, Namakkal zone.
Namakkal accounts for nearly 95 per cent of the egg exports.
The National Egg Coordination Committee (NECC) had been steadily slashing egg prices to perk up offtake and to avoid building up inventories during summer. Drop in egg price in summer is expected and it is effected so as to stay in pace with the price at other NECC zones across the country, as the rising mercury has reduced consumption, according to Mr Selvaraj.
“We expect it to recover after Easter,” said an NECC spokesperson. Meanwhile, the price of cull birds is inching up to cater to the rise in demand for animal protein during summer. The Broiler Coordination Committee has increased the price by Rs 8 a kg to Rs 63. The broiler price touched a record Rs 75 a kg in March last year.
>gayathri.gururajan@thehindu.co.in
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