An ever-increasing demand, spiralling input costs, pricey fish and vegetables have resulted in egg prices rising steadily, reports The Hindu Business Line. With the monsoon setting in and the decision by Kerala and Karnataka (major markets for Tamil Nadu's poultry trade) Governments to impose a ban on fishing from June 14 , the poultry industry expects egg and chicken prices to be on the boil again.

“End of austere seasons, summer and re-opening of schools have brought us some cheer,” said a poultry-unit owner.

In Tamil Nadu alone, some 70 lakh eggs are consumed in schools under the Noon Meal Scheme. The re-opening of schools, a major consumer of eggs under noon-meal scheme, also provides a shot in the arm to the industry whose export basket almost dried up.

Mr P. Selvaraj, Chairman of the NECC's Namakkal zone, told Business Line that soaring cost of soyameal – a key ingredient in poultry feed is also one of the reasons. Soyameal at Indore ruled at Rs 28,200-28,400 a tonne on Thursday against Rs 17,700 during the corresponding period a year ago. Feed costs account for two-thirds of cost of production in a poultry unit.

Prices of layer birds has been increased to Rs 48/kg (Rs 44) and is likely to go up further on demand hopes while the Broiler Coordination Committee has retained last week's Rs 76/kg. Broiler prices touched Rs 75 during March 2011.