Why Are Egg Prices Rising In India?

Eggs are a staple food item that is consumed worldwide. In India, the second-largest egg-producing country globally, the industry has experienced significant price hikes due to a range of factors. In this article, we will examine the causes and impacts of rising egg prices in India. Let’s get started:

High Price Impact

The high egg prices can have a significant impact on consumers who rely on eggs as a cheap source of protein. It can also lead to changes in consumer behaviour, as people may seek alternatives to eggs or reduce their consumption of eggs altogether. High egg prices can also have a ripple effect on other industries that rely on eggs, such as the baked goods and restaurant industries.

Factors Contributing To Price Hike

There are many factors at play that affects egg price movement. Here are a few factors:

• Supply And Demand Imbalance– India’s egg industry has been experiencing high prices due to a supply and demand imbalance. The demand for eggs has been on the rise due to the country’s growing population, rising incomes and increased awareness of the health benefits of eggs. However, the supply of eggs has not kept up with the growing demand, resulting in higher prices.

• Feed And Transportation Costs– The cost of poultry feed has been increasing in India due to a shortage of raw materials, which has been passed on to consumers in the form of higher egg prices. Transportation costs have also risen due to the increase in fuel prices, further contributing to the high prices of eggs.

• Bird Flu Outbreak– The bird flu outbreak in India has significantly impacted the egg industry, resulting in a reduction in the supply of eggs and driving up prices. In 2021, several bird flu outbreaks occurred across the country, leading to the culling of millions of birds.

• Production Decline– The increase in egg prices has had a severe impact on small poultry farmers in India, who struggle to afford the high cost of poultry feed. As a result, small farmers have reduced their production or left the market altogether.

Insight

While efforts have been made to replenish the flocks, egg shortage still persists in India. The shortage pushed egg prices that weight heavy on egg consumers who rely on eggs for their protein intake and fulfilling their nutritional requirements. Egg price increase has demotivated famers because of high costs of production costs.