Chicken, egg prices decline

After staying high for two months, prices of broiler chicken and eggs declined sharply due to falling consumer demand in the auspicious month of Shrawan, during which most people prefer to consume only vegetarian food.

Data compiled by the papaak.com showed (Mota) broiler chicken prices in Vizag dropped 25 per cent in the past month to trade currently at ~68 a kg compared to ~90 a kg a month ago. Similarly, broiler chicken in Darbhanga (Bihar) is sold at ~61 a kg now, a 20.8 per cent drop from its prevailing market price of ~77 a kg a month ago. A sharp decline in broiler chicken prices has proved a double whammy for farmers. Chicken farmers’ margins have squeezed dramatically between falling finished products’ prices and rising raw material costs. As a consequence, most medium and small-size farmers have reduced their production capacity which would reduce availability during the ensuing peak demand season after Diwali.

“Precisely, the unrest in Jammu and Kashmir (J&K) has blocked road transport from the north including Punjab and Haryana to the major consumer markets in J&K. So, the supply disruption from the north resulted into a sharp decline in the prices of broiler chicken in this region. Steadily, the trend spilled over to other parts of the country also including Rajasthan, Delhi, Uttar Pradesh and Bihar. The supply disruption also coincided with the auspicious month of Shrawan and other festivals in various parts of the country during which people do not eat non-vegetarian food. So, demand of poultry products declined sharply during the past two-months,” said K G Anand, general manager, Venketeshwara Hatcheries. According to industry sources, the current prevailing price of ~60-70 a kg of broiler chicken works out to at least 20 per cent lower than the average production cost of ~75-80 a kg. So, chicken farmers are currently loosing ~10-15 a kg on output.