Egg and Chicken Prices Drop as Shravan Demand Softens

Recent data indicates a significant decline in farm-gate egg and chicken prices, dropping by over 20% and returning to levels not seen since the peak of last month, primarily due to lower demand during the auspicious month of Shravan. Currently, broiler chicken is priced between ₹90-95 per kg, and eggs range from ₹6 to ₹6.50 per piece, reflecting a pivot in market dynamics. Despite this temporary decrease in consumer prices, the underlying issues of rising feed costs and supply pressures persist, putting a strain on poultry farmers.

For the common citizen, this price drop may appear beneficial in the short term, alleviating some financial burdens associated with egg and chicken purchases. However, the significant increase in feed costs—up by 40-60%—means that farmers are currently losing approximately ₹0.50-0.60 on each egg sold, signaling potential instability in the market. Unless these supply-side issues are addressed, the decrease in prices may be short-lived, and consumers could face higher costs soon after the auspicious season ends.

Looking ahead, the poultry sector’s viability hinges on addressing the escalating feed costs and ensuring the domestic availability of essential feed ingredients like maize and soybean meal. Industry experts stress that a collaborative effort is necessary to mitigate these challenges, with government action to stabilize feed prices seen as critical for long-term sustainability. As seasonal effects diminish and festivals come and go, the industry must prepare for fluctuating demand while ensuring that the economic pressures on farmers do not lead to permanent damage to the supply chain.

Source: The Hindu

(Expert Note: This report was independently prepared by the Wealthova Economy team.)