Egg prices have also become another concern for Indian households, with nearly half of consumers saying they have reduced either the quantity or frequency of their egg purchases after a sharp increase in prices over the past six months.
According to a LocalCircles survey published on Wednesday, 48 percent of surveyed egg-consuming households said they had cut back on purchases because of higher prices. It also collected more than 67,000 responses from consumers across 287 districts, providing a broad snapshot of changing consumer behaviour.
In egg prices have increased substantially for many consumers, it found. More than 84% of respondents said they received some increase in egg prices during the six months. Of those who estimated price hikes, 31% reported a price increase of between 10% and 25%, and another 31% estimated 25% to 50%.
Another 22% reported an increase of up to 10%, and 16% were unable to estimate the extent of the price rise.
Egg prices reach almost Rs 14 on some platforms
The analysis highlighted the significant difference between farm-level and retail prices. Ex-farm egg prices have risen to about Rs 7 per egg compared to about Rs 4.94 a year earlier.
At the retail level, eggs were selling at around Rs 8.50 to Rs 9 per egg, although prices on some online platforms had reached nearly Rs 14 per egg.
The increase appears to have impacted household buying patterns. Of 19,638 respondents who answered questions about their response to higher prices, 48 percent said they had reduced either the quantity or frequency of purchases.
Another 10% said they had switched to cheaper alternatives or different suppliers. Meanwhile, 37% still bought eggs in the same quantity despite those price increases. 5% had not experienced a significant increase.
But none of the respondents said that they have completely stopped buying eggs.
Poultry feed costs put pressure on egg prices
The survey report found the increase in egg prices largely to rising poultry-feed costs and supply disruptions.
Feed is estimated to account for 65% to 70% of the total cost of egg production, so a change in feed prices is of particular importance to poultry farmers and ultimately consumers.
Maize is a significant component of poultry feed and accounts for more than half of the feed mix. Maize prices have increased to around Rs 26,500 per tonne, compared with approximately Rs 14,000 three years ago.
Other feed items such as soybean meal and de-oiled rice bran have also risen in price. Maize has been finding increased demand for ethanol production, which is one factor affecting their availability in the poultry industry.
Summer heat also hits egg supply
Supply disruptions have also added pressure to the market. The report also pointed out the impact of extreme summer heat in coastal Andhra Pradesh, a key poultry-producing region.
According to the survey report, more than 16.35 lakh birds died due to the heat, while daily egg-laying capacity declined by nearly 30%.
Such disruptions may have a negative impact on eggs’ availability in the market and lead to fluctuations in the price of eggs, particularly when production costs are already high.
Egg safety questions remain high
As well as prices, egg safety is currently one of the most important concerns for consumers.
Of 26,560 respondents who answered the food-safety question asked in the survey, 70% said they were very concerned about egg quality and adulteration, while 20% were somewhat concerned. Only 6% were either indifferent or did not express concern.
The concern came as egg safety is under more scrutiny. The Food Safety and Standards Authority of India (FSSAI) ordered a nationwide surveillance exercise after a consumer group’s laboratory test reportedly detected traces of nitrofuran metabolites in a batch of branded eggs.
FSSAI stated that eggs were safe to consume and said that false claims linking eggs to cancer were misleading and scientifically unsupported.
Calls for better egg labelling and supply measures
LocalCircles has recommended a number of solutions to alleviate consumer concerns and supply-side challenges. For instance, easier labelling with the date of lay and egg grade, and source could help consumers make better purchasing decisions.
In addition, the organisation has called for maize supplies to be protected for the poultry sector and recommended that ethanol blending targets be evaluated given the potential impact on feed availability.
It also recommended that FSSAI's nationwide egg-safety surveillance programme be made public.
With egg prices rising and concerns about quality continuing to grow, consumers are becoming ever more concerned about not only the cost but also about the safety of one of India’s most consumed protein sources. The months ahead will have to see whether the supply is better, feed is available, and regulation can help to stabilize prices and re-engage consumer confidence.
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