Ramadan drop in egg demand brings relief to consumers, but hardship for farmers

Infograph: TBS

Egg demand consistently declines during Ramadan, and this year is no exception. While it brings a sigh of relief for consumers, who have been sandwiched by runaway food inflation for years, it has another side. This downturn comes at a heavy cost to struggling farmers, who are incurring losses of around Tk2.5-3 per egg due to the lack of proper storage facilities.

Md Sadiqur Rahman, a farmer from Kishoreganj's Sadar Upazila, currently raises 3,000 layer chickens that are producing eggs. Yesterday, he sold each egg for Tk7.50.

"I'm losing around Tk10,000-11,000 every day. I've been farming for many years, but I've never experienced a crisis like this during Ramadan," he expressed his frustration to The Business Standard.

Sadiqur explained that the lack of storage facilities is worsening the situation. "In previous years, we could store eggs with potatoes in cold storage, which kept them fresh for 10-12 days," he said.

"However, this year, due to heavy fines imposed by the Directorate of National Consumer Rights Protection, eggs are not being stored. If storage facilities were available, egg prices wouldn't have fallen so drastically."

Currently, eggs are being sold at retail in the capital for Tk38-43 per four pieces. Ramadan began on 2 March, and a month ago, the price was Tk45-50. On the 15th of Ramadan, the price ranged from Tk38-45.

In 2024, Ramadan began on 12 March. A month before Ramadan, on 12 February, eggs were sold at Tk44-47 per four pieces in the capital's retail market, according to data from the Trading Corporation of Bangladesh (TCB).

By 15 Ramadan, the price had dropped to Tk40-43. After Ramadan, prices began to rise again, reaching Tk45-50 by 12 May, a month after Eid.

Similar trends were observed in 2022 and 2023. The price of eggs before and after Ramadan was Tk8-10 higher per four pieces.

Poultry industry stakeholders say while consumers benefit from lower egg prices during Ramadan, marginal farmers are struggling as they cannot cover production costs.

Farmers say since the start of Ramadan eggs have been sold at the farm gate for Tk7-7.5. Although the price rose to Tk9 after 18 March, it has been falling again over the last two days.

Last year, the Department of Agricultural Marketing determined the cost of egg production and the farm-level price.

As a result, the cost of producing each egg was Tk10.19, and the government set the maximum price at Tk10.58. Despite discussions of adjusting the price later, no changes were made.

Khondoker Md Mohsin, secretary general of the Bangladesh Poultry Industries Association, told TBS, "During Ramadan, demand for bakery-centric foods decreases, leading to lower egg consumption. After Eid, when demand rises again, prices increase. This is the pattern every year."

He said demand for eggs decreases by about 30-33% during Ramadan. "Normally, there is an average daily demand of about 50 million eggs. During Ramadan, it drops by a third. If these excess eggs were stored in cold storage as per regulations, it would help manage the pressure after Eid.

"This way, farmers wouldn't face losses, and consumers could buy eggs at the same price year-round. However, in our country, cold storage for small farmers has yet to be developed," he added.

Mohsin, who owns United Agro Complex, emphasised the need for cold storage, suggesting that in districts where eggs are primarily produced, the Department of Livestock Services, Department of Agricultural Marketing, and Directorate of National Consumer Rights Protection should form a monitoring team to arrange storage for eggs from registered farmers.

Sharing experiences from other countries, he said, "In some states of India, eggs are stored at temperatures of 8-13 degrees for up to a year. In our country, no cold storage has been developed for eggs. We have submitted this proposal to the Ministry of Livestock."

"Our goal is to ensure consumers can buy eggs at the same price year-round, preventing losses for farmers," he added.

According to the livestock department, Bangladesh produces about 550 million more eggs than the demand, with an annual production of 2.374 billion eggs. This translates to a per capita availability of 135 eggs per year.

Sumon Hawladar, president of the Bangladesh Poultry Association, called for protection of farmers alongside cold storage development, emphasising the need to consider marginal small farmers.

He explained that small farmers face higher production costs than corporate institutions, making them the hardest hit when prices fall. He urged the government to provide loan assistance to farmers in such situations.

He further said egg prices are set through SMS from the Tejgaon market, with prices being deliberately manipulated. The government has yet to break this syndicate, which is causing marginal farmers to suffer.