The Hindu Business Line : Egg prices cut on fall in offtake

A SLOWDOWN in consumption and higher output have put pressure on table egg prices in the past ten days. The Namakkal-based zonal committee of the National Egg Coordination Committee (NECC), which pruned its weekly price by five paise last week, has further reduced another five paise to Rs 1.30 a piece on Thursday.

The current reduction in the wholesale rate has come amidst trade's concern over the falling egg consumption in the southern markets in view of the religious festivities this month, including the harvest festival of Pongal. During this period, people generally tend to exclude egg from their meals.

Sources in the egg trade said with egg shipment from the region keeping almost the same pace as it prevailed in 2005 calendar, the traders were anxious not to build up stocks in the face of festival times, and, hence, favoured lowering of the price.

NECC has chosen to retain the current rate till January 19.

Egg market sources view that considering the higher per day egg output seen of late (which is estimated to be around 1.6 crore pieces), egg price may continue to face price pressure for the next few weeks or so.

Broiler prices up: In contrast to the shell egg rate, live chicken prices have stood ground over the past week. The wholesale price has increased this week to Rs 40 a kg from the Rs 35-36 price band a week ago.

The sentiment for a higher broiler offtake, largely due to the likely demand for export of processed chicken, is believed to have aided the increase in the farm-gate price for the broiler this week.