Egg prices in the region have surged to an unprecedented Rs 8 per piece, marking the sharpest rise recorded so far. The wholesale benchmark rate (Rakam rate) has touched Rs 7.20 apiece, with traders confirming that prices have been climbing steadily over the past two weeks. The previous highest rate was Rs 6.90, and that too only for a brief period, according to long-time traders.
Egg prices rise sharply over two weeks
Traders noted that last Thursday, the Rakam rate stood at Rs 6.80 per egg. By Tuesday, it rose to Rs 7, before touching Rs 7.20 by Thursday, setting a new record.
Nityananda Shetty of Sunkadakatte, who has been in the egg trade for more than four decades, said the sustained increase indicates deeper supply issues rather than a seasonal fluctuation.
Festive season expected to push prices further
With Christmas and New Year festivities approaching, demand for eggs is expected to rise further. As eggs form a key ingredient in cake preparation and confectionery, traders anticipate another upward revision in prices in the coming weeks.
Increased institutional demand adds pressure
A notable rise in supply requirements for anganwadis, schools, and large-scale events this month has contributed to the upward price pressure. Traders pointed out that institutional consumption has grown steadily, reducing availability in the retail market.
Rising feed costs and poultry farm closures impact production
Earlier, maize formed the primary poultry feed. However, maize prices have increased sharply due to greater consumption as food and its use in processed products.
With feed costs escalating, many poultry farms have incurred heavy losses, forcing several to shut down operations. This has resulted in a noticeable dip in production, further tightening supply.
Eggs sourced from other districts to meet local demand
To keep up with the current consumption levels, traders are sourcing eggs from Davanagere and Mysuru. Despite this, the supply gap continues to widen, making further price hikes likely if production does not stabilise soon.
Conclusion
The current spike represents a combination of rising input costs, reduced production, and heightened festive and institutional demand. Unless feed prices stabilise and shuttered poultry farms resume operations, consumers may have to contend with higher egg prices through the peak festive season.