Egg prices surge amid winter demand, export to countries like Bangladesh

Kolkata: Egg prices have surged by around 25 per cent in the Kolkata market, rising from Rs 6.5 to Rs 8 per piece within a fortnight, amid winter demand and recent exports to countries like Bangladesh, officials said on Tuesday.

The poultry industry body, however, asserted that exports to Bangladesh are not the primary reason for the spike, since the country is not among India’s traditional export markets.

The West Bengal Poultry Federation attributed the price hike to winter demand, rising poultry feed costs and exports to countries such as Bangladesh and Malaysia, which are new markets for India.

The export order for Bangladesh and Malaysia amounts to around 5 crore eggs for November and December.

"Egg prices have increased nationally, not just in West Bengal, due to inflation in feed prices. However, retail prices should not exceed Rs 7.5 per unit as the wholesale rate stands at Rs 6.7 per piece. There is no crisis or shortage of eggs in the country," the Federation's general secretary Madan Mohan Maity told PTI.

Maity explained that input costs have risen by 30 per cent, with maize prices — a key poultry feed component — doubling from Rs 14 to Rs 28 per kg since 2021.

While local traders said in winter egg prices tend to firm up but this season the jump is sharper.

"The root cause of this issue is the shortage of maize. We need to increase maize production by at least 40 per cent or allow free imports. Demand for maize from ethanol plants has surged and is projected to account for nearly half of the total supply of 38 million tonnes within a year, up from just 1 million tonnes in 2021," Maity said.

When asked whether exports are also among the reasons, Maity noted that Malaysia and Bangladesh together ordered 5 crore eggs for November and December, but so far, not more than 2 crore eggs have been exported.

The Bangladesh government has turned to India for egg imports since September to stabilise its soaring domestic prices.

From Bengal, eggs are primarily exported through the Petrapole-Benapole border. However, Maity clarified that most of the exported eggs are sourced from other states, not Bengal.

Oman, Maldives, the United Arab Emirates, Kuwait, and Qatar remain the top five markets for Indian eggs, along with several other countries importing from India.

However, rising political tensions in Bangladesh, particularly concerning alleged human rights violations against minority Hindus following the fall of Sheikh Hasina's government, could potentially disrupt exports.

Traders fear that escalating agitation in India over these issues might lead to curbs on exports.

Sushil Patwari, former chairman of the Federation of Indian Export Organisations' West Bengal chapter, asserted that the unrest has not yet impacted trade.

"There has been a general decline in imports from Bangladesh over the last several months due to their fiscal issues and not because of the ongoing unrest," Patwari added.

Maity further noted that Bengal's daily egg demand stands between 3.5-4.5 crore, with most of it being met through domestic production and only a small fraction imported from other states.

A state government task force official said they are keeping a close watch on the situation.