The idea of eating chicken will put less stress on the wallet as the egg prices have shooted to a new height in various parts of the country. According to Poultry Federation of India (PFI), egg prices will remain high till February, 2018, as consumers are earmarking a larger portion of their stretched food budgets for eggs. The eggs rate was suddenly raised due to low productivity.
In poultry farms located in Pune, a crate consisting 100 eggs costs around Rs 585 at present. Buying chicken seems a worthwhile option as the price levels of a dressed chicken in Pune costs around Rs 130-150 per kg levels. This is nearly equivalent to Rs 130 to Rs 150 - the rate at which chicken is sold.
Attributing the price rise to a supply crunch and robust demand, Ranjit Reddy, president, Telangana Poultry Breeders Association, said, "For the last four years, the industry has been going through a rough phase". Bhosale said, "When vegetables turn costly, people switch to eggs, pushing up its rates as well".
A leading egg products manufacturer in Erode, Tamil Nadu said "Egg prices usually rise at this time due to winter demand, while broiler rates fall because supply goes up, with the birds taking less time to reach slaughter weight. This is a imple substitution effect", Bhosale said.
"The poor who can not afford vegetables, which are available at exorbitant prices in retail, are preferring eggs in their diet", poultry farmer Manoj Sharma has been quoted as saying in the report.
The rate increase in eggs will continue for further more months. However this price hike has not been witnessed before.
Inflation based on the monthly Wholesale Price Index (WPI) rose to six-month high of 3.59 per cent in October as compared to 2.6 per cent for in September. According to BofAML, November CPI inflation is likely to be around 4.5 per cent.