Egg prices in Tamil Nadu hit record high as demand and feed costs rise

Chennai, July 11 (IANS) Egg prices in Tamil Nadu have reached a new high after the National Egg Coordination Committee (NECC) increased the procurement price by 5 paise to a record Rs 6.55 per egg on Saturday.

The latest revision comes amid robust consumer demand, escalating poultry feed costs and export-related pressures, with retailers warning that prices for consumers could climb further in the coming days. The procurement price, which serves as the benchmark for wholesale transactions, has been revised from Rs 6.50 to Rs 6.55 per egg.

According to industry sources, this is the highest procurement price fixed by the NECC to date. The increase is already being reflected in the retail market. Eggs are currently being sold at around Rs 8 each in most retail outlets across the state, and traders say consumers may have to pay even more if production costs continue to rise and demand remains strong.

Poultry industry representatives attribute the latest hike to a combination of factors. Demand for eggs has remained steady in both domestic and institutional markets, while the cost of producing eggs has increased significantly due to higher prices of poultry feed ingredients such as maize and soybean meal. Feed accounts for the largest share of production costs in the poultry sector, making fluctuations in raw material prices a key determinant of egg prices.

Industry stakeholders also pointed to export-related factors and the impact of the ongoing conflict in West Asia, which has contributed to volatility in input costs and logistics. The situation has affected supply chains and added to production expenses, prompting producers to seek higher procurement prices to offset rising costs.

Tamil Nadu is one of India’s leading egg-producing states, with Namakkal serving as the country’s largest egg production and export hub. Price revisions announced by the NECC often influence market trends not only within the state but also in several other regions that rely on Tamil Nadu’s poultry industry for supplies.

While the latest increase is relatively modest at 5 paise per egg, poultry farmers say it is necessary to help compensate for mounting input costs.

However, consumers are likely to feel the impact as retailers pass on the higher procurement rates.

With demand expected to remain firm and feed prices showing little sign of easing, traders believe egg prices could remain elevated in the near term unless there is a significant improvement in raw material availability or production costs.

–IANS

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