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Egg Price Slashed on Buyer Resistance

by 5m Editor
20 January 2012, at 9:53am

TAMIL NADU, INDIA - After scaling to a record Rs 3.20 a piece in December last year, the egg price has cooled down.

According to The Hindu Business Line, to perk up poultry consumption, the National Egg Coordination Committee (NECC), Namakkal zone, has decided to slash the price of egg by 25 paise to Rs 2.70.

The price touched a record Rs 3.13 in December as the cold wave in the North and intensification of cyclone Thane in the South had pushed up poultry prices.

Industry sources attributed the price cut to buyer resistance as well as the clearing of stocks that piled up during Pongal season when usually stocks get accumulated (as schools remain closed for at least three days and fewer trucks ply between Tamil Nadu and neighbouring States). "We don't want to pile up these perishable products and hence we have trimmed the prices to perk up consumption," a source said.

Mr P. Selvaraj, Zonal Chairman, NECC, Tamil Nadu, said the onset of cold wave in North India was the main reason for record prices during the fag end of last year. The seasonal market attracted an average 25 lakh eggs a day of Namakkal's average daily production of 2.75 crore eggs. "Consumption of eggs usually goes up in the winter. Apart from that the Christmas and New Year holiday season has also boosted the consumption of poultry products. But now, owing to higher retail prices we see a lag in offtake and hence we have slashed the prices," he added.

Meanwhile, NECC has trimmed the price for layer birds to Rs 30 a kg (Rs 43) while the Broiler Coordination Committee's rate for cull birds is down by Rs 4 a kg to Rs 46.