Why Did Namakkal Egg Prices Reach a Record Rs 6.25?
Synopsis
Key Takeaways
- Namakkal egg prices hit Rs 6.25, a new record.
- Price stability lasted 22 days at Rs 6.10.
- Demand increases with the festive season.
- Sabarimala pilgrimage has less impact on consumption this year.
- Prices likely to remain firm until mid-January.
Chennai, Dec 15 (NationPress) In Tamil Nadu's Namakkal, a key hub for poultry in Asia, the farm-gate price of eggs surged to an unprecedented Rs 6.25 per egg on Monday, as reported by the National Egg Coordination Committee (NECC).
K. Singaraj, the Chairman of the NECC in Namakkal Zone, confirmed this latest rate increase, which signifies the peak of a consistent rise that started last month.
The price first reached the Rs 6 mark on November 17, marking a historic point for the Namakkal poultry industry, then climbed to Rs 6.10 on November 21. Notably, this price remained stable at Rs 6.10 for 22 straight days until December 12, marking one of the longest periods of price stability at such elevated rates.
Following this stability, the upward trend resumed with a price adjustment to Rs 6.15 on December 13, and further increased to Rs 6.20 on December 14. The recent hike to Rs 6.25 starting December 15 has established a new benchmark for egg pricing in the area.
Officials from NECC attribute this consistent price increase to a blend of seasonal and market-driven influences.
Egg demand typically escalates during winter, further amplified by the Christmas and New Year festive season. Additionally, the enhanced distribution of eggs to Northern India and strong export demand have bolstered prices.
Interestingly, NECC officials have observed that demand has not been significantly impacted by the ongoing Sabarimala pilgrimage season.
Typically, this pilgrimage period sees a decline in egg consumption in Tamil Nadu and Kerala due to devotees' dietary restrictions. However, this year, such seasonal moderation has not noticeably affected overall demand.
Given the current market dynamics, NECC officials predict that prices are unlikely to decrease in the near future.
The farm-gate rate is anticipated to remain stable at least until the Pongal festival in mid-January, barring any sudden and significant changes in supply or consumption patterns.
In the poultry sector, daily egg and chicken prices are generally set in advance by key producers or poultry associations, considering demand trends, supply availability, and broader market indicators. With demand consistently outpacing supply, producers foresee the current price levels persisting in the upcoming weeks.