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Indian Industry Faces Egg Sales Problems

by 5m Editor
28 July 2008, at 6:08am

INDIA - Steep raw material price rise and the diversion of maize for the production of bio-diesel and beer is causing even bigger problems for the egg industry.

A brewery has been set up at Tallapalem near Narsipatnam to make beer by using maize while several units have come up to produce bio-diesel in the recent past. The increase in fuel cost has made an impact on the industry. The containerization leading to dispatch of maize, the main feed of poultry birds, in small parcels to Sri Lanka, Bangladesh and other neighbouring countries has come like salt rubbed on farmers' wounds.


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"The situation has come to such a pass that the stage will come soon when small entrepreneurs have to down their shutters due to falling margins. There is also an attempt to corporatise the industry by big entrepreneurs."
K. Varahala Raju, Zonal Chairman, National Egg Coordination Committee

The Hindu reports that the turnover of the labourintensive industry in the state is estimated to be 55 billion rupees (INR) to INR 25 billion from broilers and INR 30 billion from the egg business. The total turnover of the industry in the country is around INR 510 billion.

“The situation has come to such a pass that the stage will come soon when small entrepreneurs have to down their shutters due to falling margins. There is also an attempt to corporatise the industry by big entrepreneurs,” K. Varahala Raju, Zonal Chairman, National Egg Coordination Committee, said.

The NECC is leaving no stone unturned to impress upon the powers-that-be the ‘need’ for introducing eggs in midday meals in schools as is done already in Tamil Nadu. By supplying three eggs a week per student in Tamil Nadu, sales of 56 million eggs could be ensured per week.

Andhra Pradesh, known as the egg basket of India, is also facing problems in egg sales. Of the 100 million eggs produced a day, between 50 and 55 million are consumed within the state. Eggs should be provided in midday meal scheme to bolster the confidence of farmers, Mr Varahala Raju said.

5m Editor