Egg prices Tk23 higher than govt rate 

 Highlights:

•  Govt set the price for broiler chicken eggs at Tk142.44 per dozen on 15 Sept
•  Traders cite flood and rainfall as reasons for price hikes
•  Daily consumer demand for eggs is around 4 crore pieces
• Daily production is approximately 4.5 crore pieces 
• Small farmers face production costs at Tk10.29 per egg
• Govt fixed egg price without consulting grassroots farmers

Broiler chicken eggs are selling for Tk23 more per dozen than the government-set price in the city's kitchen markets.

According to the new rates set by the Department of Agricultural Marketing on 15 September, each egg is supposed to be sold at Tk11.87, which means a dozen should cost Tk142.44.

Besides, the prices for broiler chicken and Sonali chicken should be Tk179.59 and Tk269 per kg, respectively. 

During visits to various kitchen markets in the city, this correspondent observed that eggs were selling for Tk165 per dozen. Broiler chicken was being sold at Tk180 per kg, while Sonali chicken was priced at Tk280 per kg.

When asked about the price increase, wholesale egg trader Mohammad Liton at Karwan Bazar said, "We are selling eggs at a wholesale rate of Tk155 per dozen. As retailers cannot purchase eggs at the government-fixed rate, they have to increase the price."

A letter signed by Mohammad Reazul Haque, director general of the Department of Livestock Services, stated that the egg and chicken prices set by the government were reasonable and established after consultations with stakeholders in the poultry sector.

Traders, however, said recent flooding and rainfall, along with the approaching weekend, were factors contributing to supply shortages and price hikes.

According to estimates from the Bangladesh Poultry Association, the daily demand for eggs is around 4 crore pieces, while production is about 4.5 crore pieces. Nonetheless, egg prices continue to rise due to increasing production costs.

Sumon Hawlader, president of the Poultry Association, said, "The price of eggs cannot be reduced while the mafias in the livestock and feed sectors remain unchallenged. We will file complaints against feed traders for charging exorbitant prices." He further noted that the production cost for an egg in Bangladesh is Tk10.29, while it is Tk5 in India, highlighting the need to lower production costs to reduce wholesale and retail prices.

Hawlader also said, "Prices for eggs and chickens have been set without consulting grassroots farmers. The government needs to consider our opinions. We will hold a demonstration in front of the National Press Club on 22 September, demanding that the government set reasonable prices for poultry feed, which constitutes 75% of production costs. For three years, a corporate syndicate has been charging excessive prices for poultry feed and chicks."

He added, "Eighty percent of the market supply of eggs and chickens comes from small farmers, while only 20% comes from corporate groups. The price determination process has favoured these corporate groups."

The production cost for eggs in corporate settings is Tk8.40, compared to Tk10.29 for small farmers. The production cost for broiler chickens is Tk155 to Tk170 for small farmers, while it is Tk120 to Tk130 for corporate groups, said Hawlader. 

"If feed prices do not decrease, small farmers will suffer, and many may have to close down their farms," he warned.

Although the Department of Agricultural Marketing has set the price for eggs, it lacks the authority to enforce compliance if traders choose not to adhere to it. The Agricultural Marketing Act only allows them to file complaints with the judicial magistrate.

When asked about high egg prices, customer Mohammad Munna said, "The market is still unstable. I earn Tk20,000 as my salary, but after paying my house rent, I struggle to support my family of five with just Tk5,000."

Abdul Jabbar Mondal, assistant director of the Directorate of National Consumers' Rights Protection, monitored the kitchen markets on 17 September. He said, "We observed that traders were making a profit of Tk1 per egg. They reduced prices in our presence, and we will investigate why prices have increased."

The Consumers Association of Bangladesh of Chattogram Division in a statement on 18 September said government agencies set prices without sufficient market information and relied on data from specific groups without proper analysis. 

The statement criticised the continuation of outdated pricing methods dating back to previous governments and called for regular market monitoring and strict enforcement of laws to combat syndicates.