Prices of egg from Namakkal increases after a lull

Historically, June and July experience the best average prices last 10 years, say industry

Following sharp declining in prices, egg farmers in Namakkal, which accounts for 20 per cent of country's production, is now seeing some price correction. Egg prices rose by 34 paisa during the last nine days to Rs 3.31 apiece.

The increase in the price was attributed to demand in Kerala and Hyderabad markets.

Poultry farms in the Namakkal cluster in Southern Tamil Nadu produce around 3.08 crore eggs a day. About 40 per cent of the total eggs are consumed by the Kerala market and by schools in Tamil Nadu under the free meal programme. Around 45 lakh eggs are supplied a day for the Mid-day Meals scheme, according to sources.

The other major market was Hyderabad. Every day around 30 lakh eggs are exported from here, they said.

The increase of demand in Hyderabad now has an impact in the price of eggs in Namakkal, said R Chinnaswamy, a distributor in Namakkal. If the demand is high in Hyderabad, the eggs from Namakkal could be transported there, which helps the distributors, he said.

The ban on fishing in the west cost of the country, such as in Kerala, has increased demand of eggs there and generally, during the rainy season the demands are high, which is the reason for the increase in prices, said V S Balasubramaniam, senior manager - coordination, National Egg Coordination Committee (NECC) Namakkal Zone.

"Normally, for the last 10 years, June and July are the two months of the year which see the best average price for egg," he said.

Given the current trend, the prices are expected to go up further in the coming days, which would help the poultry farmers who has been suffering in the past. Consumption is also good in Mumbai and Gujarat and this is reflecting in the increase of prices in the national level.

Orders from all the three major consumers - Andhra Pradesh, Kerala and Tamil Nadu -- dropped drastically, which in turn brought down the rates drastically earlier, says the Egg Producers Association representatives.

Andhra Pradesh market saw the political issues related to bifurcation of Seemandhra and Telegana. Order from the Tamil Nadu Government was reduced due to the Election Code of Conduct on supplies for mid day meals.

In January the average price was Rs 3.43 an egg and month on month it was reduced to Rs 3.19 in February, Rs 2.94 in March, Rs 2.58 in April and post election results in May prices increased to Rs 3.14 and in June till date (June 20) Rs 3.06 an egg. This month, the average price would also see an increase from the previous month, said the industry sources.