Eggs get pricey, baking industry feels the pinch

CHENNAI: Egg, considered to be a cost-effective protein source, is now dearer, with the retail price inching towards an all-time high of Rs 7.50 per piece. Winter coupled with the Christmas season have seen an increase in the demand for eggs. However, traders and poultry farmers in the egg industry say they are not making good business.

In Namakkal, the poultry hub of India, the situation is grim as many poultry farmers left farming due to poor profit margin.

"There is a 10 per cent hike in egg prices every year. While the rate has increased for mutton, fish and other non-veg items as well, there was no major hike in egg prices. Many poultry farmers were forced to leave the trade.

"Egg, which was sold for Rs 6 per piece 10 days ago, is currently sold for Rs 7 in retail. During summers, hens lay more eggs but in winters the number comes down, due to the climate. The low supply increases the price," said Jagatheswaran of Thirupathy Kumar stores.

"During Christmas every year, due to high demand, the rate goes up, and comes down after the New Year," Jagatheswaran added.

Home bakers in the city are feeling the pinch as the wholesale rates have also gone up due to inflation. "There has been an increase in the prices of all the ingredients used in baking. So, we are forced to increase the prices of cakes, but the customer won’t understand the correlation. This affects the business of home bakers, too," said Srinidhi Chezhian, a home baker.