By Anindita Dey
Mumbai, Jan 19 : Cautious exports due to bird flu fear in Orissa and Meghalaya may result in softening of egg and poultry product prices in the domestic market.
According to industry sources, India has just started receiving orders from West Asia and Saarc countries after the export ban was lifted a month before. However, orders were suspended after bird flu was confirmed in Orissa and Meghalaya. Both states have now put a quarantine procedure in place and started bird culling.
Some hatcheries have reportedly stopped selling in the north-eastern states as a precautionary measure.
As a fallout, industry sources say domestic prices may soften a bit due to an artificial increase in supply in some parts of India, while demand remains the same. “The first impact is that people just stopped buying eggs and poultry on such news. Besides, egg is a perishable commodity. Even if the shelf value is bit longer due to winters, except for very cold places, many parts of India, especially in central western and southern parts, it needs to be sold fast,” added sources.
However this may bring some relief to retail customers, who have witnessed a sharp surge in egg prices in the last few months. From Rs 2 per egg in the beginning of 2011, prices have doubled to Rs 4. In some places, it is even available at Rs 5-6 per egg. In Chennai, reportedly, prices have already been slashed from Rs 3.20 to Rs 2.95 per egg, due to resistance from buyers.
In December, the National Egg Coordination Committee, besides raising prices, had also raised the prices for layer birds to Rs 43 a kg (Rs 38), while the Broiler Co-ordination Committee’s rate for cull birds is up by Rs 9 a kg to Rs 50. According to egg producers, the sharp increase in prices is attributed to the cold wave in north India and cyclone in the south India, which is a hub for poultry. These two factors have led to a decline in production.
In 2008-09, following the outbreak of bird flu in northeast India, the West Asian countries banned poultry products from India and it led to a fall in egg exports, especially from the Namakkal zone in Tamil Nadu, otherwise dubbed as an export hub for poultry.
Currently, while there is no export ban from India, importers are holding back orders and watching the situation, said an egg exporter from India.
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