Egg Prices Crash In TN's Namakkal, Farmers Stare At Rs 7 Crore Daily Loss

(MENAFN- IANS) Namakkal, March 25 (IANS) A sharp fall in egg prices in Namakkal, one of India’s largest poultry hubs, has triggered alarm among farmers, with producers reporting heavy financial losses over the past few days.

The price of eggs has dropped by 40 paise within just three days, raising concerns about a prolonged slump in demand.

Namakkal, which produces over seven crore eggs daily, plays a pivotal role in supplying eggs across Tamil Nadu, multiple Indian states, and key export markets. The region also serves as the benchmark centre for egg pricing in the country, making any fluctuation here significant for the national poultry industry.

The current price decline comes amid weakening demand, which industry stakeholders partly attribute to global uncertainties, including the ongoing tensions involving the United States, Israel, and Iran.

Export orders have reportedly slowed, while domestic consumption has not been strong enough to absorb the surplus. In response to the situation, the National Egg Coordination Committee (NECC) convened an urgent meeting in Namakkal to assess market conditions.

Following deliberations, the committee decided to lower prices in an attempt to stimulate demand and clear mounting stock. The benchmark price of eggs, which was 445 paise on March 22, has now dropped to 405 paise.

The most recent revision alone saw a reduction of 20 paise from 425 paise, underscoring the rapid pace of decline.

Farmers say the current price levels are unsustainable, with production costs significantly higher than the prevailing market rate.

According to industry estimates, producers are incurring losses of nearly Rs one per egg. With daily production exceeding seven crore eggs, this translates to an estimated loss of around Rs 7 crore per day for the region.

Poultry farmers have expressed fears that the situation could worsen if demand does not recover soon. Many are calling for government intervention or support measures to stabilise prices and protect the sector from further distress.

Despite the drop in farm-gate prices, retail egg prices in Namakkal remain steady at around Rs 85 per tray. Meanwhile, chicken prices in nearby Palladam have shown resilience, holding firm at Rs 129 per kilogram. Industry observers say the coming days will be crucial in determining whether prices stabilise or continue their downward trend, with demand revival seen as the key factor.

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