Demand-supply mismatch pushes up egg price

  • | Wednesday | 18th July, 2018

The wholesale price of each such pack has increased from about Rs 990 to Rs 1,080. KOLKATA: A crunch in supply, made more conspicuous by the sudden surge in demand, has led to a sharp hike in egg price across city markets. More have turned to egg as a substitute, leading to the demand spurt and the resultant price rise. But because consumption of eggs also dropped in summer, prices actually fell. This hike of Rs 90 a pack works out to 42 paise an egg in the wholesale market.

KOLKATA: A crunch in supply, made more conspicuous by the sudden surge in demand, has led to a sharp hike in egg price across city markets. From Rs 5 apiece in the retail market till a fornight ago, eggs are now retailing at Rs 6 apiece.According to egg traders, daily supply has dipped from 1.9 crore to 1.7 crore, a deficit of 20 lakh eggs per day. The demand for egg is actually higher still as it has, in recent times, emerged as the preferred protein source following reports of poor quality meat and fish being sold in markets.Chitta Das, a wholesaler in Sealdah’s Koley Market, said monsoon has played havoc on the supply of eggs. “Many packs of eggs have been damaged during transportation from Andhra Pradesh, either because of bad roads or seepage of water. Consequently, supply to retailers has declined,” he said.Hens usually hatch less in summer, leading to a natural dip in supply. But because consumption of eggs also dropped in summer, prices actually fell. In winter, despite more eggs being hatched, the surge in demand from bakeries lead to eggs becoming dearer.But that trend has changed this summer due to the controversies surround quality of meat and fish. While the carcass scandal led to many renouncing meat, at least for a while, fresh allegations of formalin being used to preserve fish has left consumers scared. More have turned to egg as a substitute, leading to the demand spurt and the resultant price rise. That poultry feed prices also went up didn't help matters.In the last 15 days, grocers in localities across the city have increased the price of egg from Rs 5 each or Rs 60 a dozen to Rs 6 apiece or Rs 72 a dozen.Wholesalers supply packs of 210 egg each to retailers. The wholesale price of each such pack has increased from about Rs 990 to Rs 1,080. This hike of Rs 90 a pack works out to 42 paise an egg in the wholesale market. After adding his transportation cost and margin, the retailer sells charges the consumer Rs 6 an egg.Retail traders say the wholesale price of eggs is increasing by Rs 5 a pack every day. A pack of 210 eggs sold for Rs 1,075 on Monday, up from Rs 1,070 on Sunday. While this works out to a hike of less than 3 paise an egg, retail prices jumped from Rs 65 to Rs 68 and then to Rs 72 a dozen. This translates to hikes of 25 to 32 paise an egg in the course of a week.

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