Eggs rise, chicken falls as Sri Lanka, ethanol join mix

The surge in egg prices is attributed to the rising cost of feed (corn or maize and soybean meal) owing partly to demand from ethanol makers, and tightening supply in the domestic market following a dramatic rise in exports to Sri Lanka.

- Puja Das

And chicken prices fell due to lukewarm market demand as well as oversupply from rising bird weights, according to industry players and agronomists.

According to data from economists, retail inflation in chicken was a negative 3.9% in December 2023 and negative 0.8% in November 2023,compared with 7.8% in December 2022. On the other hand, retail inflation in eggs was at 4.4% in December 2023 and 5.9% in November 2023, compared with 6.9% in December 2022.

While January's official numbers are not in yet, experts said chicken prices have declined further, and egg prices have risen year-on-year but declined on-month.

"In January, chicken prices have witnessed a decline of 9% on-month and 26% on-year.

This is due to a surplus supply of broilers amid moderate demand. Large players have gone for capacity addition leading to higher market supplies," said Pushan Sharma, director of research at rating agency Crisil.