Pune: The recent drop in egg prices has severely impacted poultry farmers, pushing them into financial distress. Currently, the cost of producing an egg is ₹4.50, while companies are purchasing them for only ₹4, leading to a direct loss of ₹0.50 per egg for farmers.
During the winter season, the purchase price of eggs was ₹6, but the ₹2 decline has worsened the situation. Many poultry farmers are now struggling to afford chicken feed, raising concerns about the sustainability of their businesses.
Industry Breakdown: Who is Profiting?
Egg farmers produce eggs at ₹4.50 per piece but sell at ₹4, incurring losses.
Wholesale buyers purchase eggs at ₹4-₹4.50 and sell them to retailers at ₹4.50-₹5.
Retailers sell the eggs to consumers for ₹7-₹7.50, making a significant profit.
This supply chain imbalance has left farmers struggling to break even, while wholesalers and retailers continue to profit.
High Investment, Low Returns
Setting up a poultry farm with 10,000 layer hens costs approximately ₹1 crore. Poultry farmers argue that such a large investment requires stable market prices to ensure profitability.
Moreover, each layer hen costs ₹300 and requires 110-120 grams of feed daily, further increasing expenses. The rising summer temperatures also pose a threat, as excessive heat can lead to the death of hens, causing further financial losses.
Farmers' Demands from the Government
Subsidies for livestock feed and layer hen purchases to reduce the burden on poultry farmers.
A ₹1 incentive per egg to help cover losses and maintain egg production.
A government-appointed representative in the egg market committee to regulate egg prices and ensure fair rates for farmers.