Action warned if eggs sold over Tk12 apiece, import mulled if needed

The price of eggs should not be more than Tk12 a piece at the retail level as the production cost per egg is around Tk10.50, said Fisheries and Livestock Minister SM Rezaul Karim. 

"Marginal and institutional egg producers will be able to make a profit by selling eggs at Tk12 a piece and if anyone tries to sell it higher, the Directorate of National Consumer Rights Protection will take action against them," the minister said after a meeting with poultry sector businessmen involved in egg production at the ministry on Sunday.

The announcement came as the price of eggs soared to Tk180 a dozen (Tk14-15 apiece) in the market in a span of a week.

Meanwhile, speaking at the inauguration of TCB's August sales on Monday, Commerce Minister Tipu Munshi said egg imports will be allowed in coordination with the Ministry of Fisheries and Livestock if the price does not come down soon.

He also said the Ministry of Fisheries and Livestock determines the price of eggs in the market and raids will be conducted in the market to ensure that eggs are being sold at the fixed rate.

The egg market became volatile a few months ago, but the price started to fall after the commerce minister at that time announced to monitor the market.

According to sources present in the meeting between poultry traders and the livestock minister, the businessmen said the production cost of institutional farmers is Tk10.31 per egg and that of marginal farmers is Tk10.85. 

If eggs are sold at Tk12 a piece, as the livestock minister said, then marginal farmers may face some losses. Marginal farmers proposed Tk13 as the retail price.

Poultry Association President Suman Howladar, who was present at the meeting, said the retail price of each egg should be Tk13 as the production cost of marginal farmers is high.

At the end of the meeting, Md Mahbubur Rahman, the general secretary of the Breeders Association of Bangladesh, said egg production has decreased due to the closure of many farms, which is affecting the market. 

"However, the gap between the production cost and the retail price of an egg should not be more than Tk2. The government should take action against those who do not accept it," he added.

Factors behind the price hike

Egg producers said before the pandemic, the daily production of eggs in the country stood at around five crore pieces. But during the pandemic, many farms have been closed due to chronic losses.

The Bangladesh Poultry Industry Central Council said the current daily egg production has fallen below four crore pieces due to the closure of many layer farms.

Market insiders have alleged that banking on the supply-demand gap, a class of unscrupulous traders are making extra profits. Even some farmers are selling eggs at higher prices.

Abu Luthfe Fazle Rahim Khan, senior vice president of the Breeders Association of Bangladesh, told The Business Standard, "There is a big mismatch between demand and supply because we do not know what our actual demand is. Sometimes when the price is high, the production increases, and when the production is high, the price falls leaving producers in the lurch."

"But despite the high production cost of eggs at present, the retail price should not be more than Tk13 a piece," he added.

According to producers, feed prices have gone up due to rising prices of various ingredients, which increased the cost of production.

To reduce the cost, there are alternative ingredients for feed production, which traders want to import duty-free.

A nutritional challenge for low-income people

When the prices of fish, meat and vegetables are high in the market, people with limited income are heavily relying on eggs for dietary nutrition. A month ago, the price of eggs was Tk144 a dozen.

Mohammad Masum, a day labourer who came to the Karwanbazar kitchen market in the capital to buy eggs on Monday noon, said, "I am the sole earner in a family of four members. I got no work today due to the rain. Due to costly fish and meat, we are eating eggs on a daily basis but that too went out of reach now. We need at least six eggs a day which cost about Tk85 or more. That is a lot for someone like me. How can we survive if prices of everything go up like this?"

Like Masum, many low-income people in Dhaka are now thinking twice before buying eggs.

Stakeholders say rising egg prices could lead to nutritional deficiencies among low-income people.