Businessmen say - there is no production according to demand, there is no possibility of immediate price reduction
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The price of eggs has set a new record. Even though the country has been declared self-sufficient in eggs, businessmen have been raising prices every week since last December 15. They are raising prices on the pretext that supply is not as per demand.
Last December 15, the price per crate of medium eggs was 440 rupees and the price per crate of large eggs was 455 rupees. According to the Nepal Layers Poultry Breeders Association, the price of medium eggs has increased to 455 rupees per crate and 470 rupees per crate of large eggs on November 21.
By the end of December 27, the price of eggs increased again. The association raised the price of medium eggs to Rs 470 per crate and large eggs to Rs 485 per crate with effect from November 28.
The price was not limited to that, on December 4, the price increased again and the price of medium eggs was increased to 485 rupees per crate and 500 rupees for large eggs. On December 12, the association again set a new price - 500 rupees per crate of medium eggs and 515 rupees per crate of large eggs. This price is the highest ever.
The price of eggs from the producer to the market is interesting. Most of the traders who sell feed also raise layers and produce eggs. They set the price,' said a businessman.
The price of eggs is set arbitrarily in the retail market as well. The association has fixed the price of each egg at 22 rupees 50 paise. In the retail market, it is being sold for up to 25 rupees. Eggs are produced more in Chitwan, Dang, Makwanpur, Jhapa, Morang, Sunsari and other districts. However, the price of eggs is determined based on Chitwan. It is said that after the manufacturer sets the price, the distributor sells the box, crate and shipping fee to the retailer.
"When loaded from Chitwan and delivered to the depot-dealer, an additional 20 rupees is added per crate with freight, cartons and crates," said a businessman, "then it reaches the retail store." Even retail stores keep some profit and sell it to common people. It costs 600 to 620 rupees per crate in retail. Buy one and pay up to Rs. 25.
The businessman says that there is no reason for the price of eggs to increase in a week. But the market is running erratically. A syndicate of some big traders has been running, due to which the consumers have been hit. Due to cartelization of the Union and lax government regulation, the price of eggs has been inflated. "Even though there is no official data, the price has been increased on the pretext that the production is low and the price of grain has increased," said the businessman.
According to a report released by the Department of Animal Services a few years ago, feed accounts for 75 percent of the price increase. Labor costs are 7 percent, capital (coop costs) are 2 percent, interest on investment is about 6 percent, and chick prices are about 3 percent. The price of each egg increases by 4 to 6 rupees when it reaches the market from the production site.
The government announced that the country became self-sufficient in Anda in March 2077. The then Prime Minister KP Sharma Oli and Agriculture and Livestock Development Minister Padma Aryal claimed that the country is self-sufficient in eggs, stating that 61 eggs are available per person per year in Nepal. Even now the Prime Minister is KP Sharma Oli. However, according to the words of the businessman, about 10 percent of the demand for eggs in the market is insufficient.
The association claims that the daily production of eggs has decreased by about 60 percent in the past four to five years. He says that the price has increased for the same reason. According to the information of the association, the price of eggs per crate has increased by 265 rupees since 2076. In December 2076, the price of medium eggs was 255 rupees per crate and the price of large eggs was 275 rupees per crate. On December 12, 2081, the price of medium eggs per crate has reached 520 rupees and large eggs have reached 535 rupees per crate.
Nepal Layers Poultry Association claims that the price increase is justified. The reason for the increase in prices is the decrease in production, many farmers have been displaced since Covid. Old chickens were used as meat, new chicks did not come. That's why the egg production has decreased," said Binod Pokharel, founder president of the association, "now it's cold weather, the demand from hotels has also increased due to the increase in the number of tourists. There has been an awareness among the common people that eggs should be eaten. Due to these various reasons, the demand has increased. However, due to lack of production, prices are increasing.'
Pokharel said that about 60 percent of farmers have been displaced since Covid. Before Covid, about 800 small-scale farmers used to produce eggs. Now there are only around 2500," he said, "Production is also only 30 to 32 million tons per day. According to demand, 10 percent production has not yet reached.'
Now the cost of the farmer is 16 rupees 57 paise per egg. They sell it for Rs.17. When it reaches the shop, the price of an egg ranges from 19 to 20 rupees. It costs 19/20 rupees including the transportation fee, tout, etc. from the farmer to the shop. Businessmen sell it with a profit of 2 to 2 and a half rupees," Pokharel said. According to the association, the consumer price is 22 rupees 50 paisa. Common people do not get eggs at the price fixed by the association. A single egg costs up to 25 rupees in the shop.
President of Nepal Egg Producers Association Shivram KC also said that the prices have increased since 3 months after the decrease in production. Farmers raising chickens and layers have decreased. At this time, the demand for eggs has also increased, that's why the price has increased,' said KC.
Rajan Paudel, Director General of Commercial Supply and Consumer Protection Department, said that due to the increased consumption of grain, it has affected the price of eggs. "We had a discussion with the businessman. Feed intake is increased in the cold. "The cost has increased, that's why the price has increased," said Paudel.
