LAHORE
The cost of a typical urban breakfast has seen a record-breaking rise in about a month as it is getting terribly eggs-pensive.
The price of a dozen of eggs climbed to Rs 128 in the retail market on Saturday from Rs 101 witnessed a month back, showing price escalation at breakneck pace of about Re 1 per day. According to market insiders, the skyrocketing price of eggs has been unprecedented and also record-breaking in the sense that now an egg costs a consumer a whopping over Rs 10.
According to the official price monitoring mechanism, high prices of eggs are being observed in all wholesale markets of the province of Punjab, ranging between Rs 125 and Rs135 per dozens. There are reports of upwards trend in egg prices in Karachi also.
Eggs are an essential part of breakfast and considered beneficial in meeting animal protein requirement for humans in addition to its other nutritional values. The intake of protein is already at the lower side in Pakistan and it is believed that rising trend in egg prices would further reduce its use. According to industry statistics, per capita consumption of eggs in Pakistan stands at 65-70 annually whereas the developed world is consuming about 300 eggs per capita per year. Average production of table eggs of the local industry has been recorded at 18,000 million.
Interestingly, the price of eggs remained well below Rs 100 per dozen in last year’s winter season. However, in sheer contrast, the cost of eggs jumped to Rs 100 per dozen this year even before start of the winter season, which is again a new phenomenon.
A smooth trend in egg prices had been witnessed till the end of October this year as prices hovered around Rs 90 per dozens since the mid of summer. However, in ensuing period, strong egg prices have changed market dynamics altogether. Gaps in supply contributed to the trend and consumers are lately finding it hard to get eggs at stores in various localities. Keeping in view of squeezed supplies, some shopkeepers have restricted volumes to allure their loyal customers by offering half-dozens of eggs at a time.
While downplaying the price surge, senior government officials and poultry industry representatives have identical views on the jump in egg prices and they have termed it an outcome of imbalanced demand and supply of the commodity.
The price of eggs had been at the lower side in the last couple of years following a similar rising trend that had been seen three year back in 2012-13, said Naseem Sadiq, Secretary Livestock & Dairy Development. He said that the production cycle of egg had been disturbed due to persistent low prices. Many players have been forced to abandon their business to unfavorable business conditions on the back of unsustainable low prices. He did not rule out further increase in egg prices in the current winter season. However, he expressed the hope that the rising trend in egg prices would slow down in coming days and it may stabilise at the level of below Rs 140 per dozens following the initiation of stored eggs’ supply.
Sadiq also blamed diversion of egg supplies from Punjab to Karachi for the increasing trend in prices in the province.
Abdul Basit, a leading producer of poultry products and President Lahore Chamber of Commerce & Industry, said that eggs producers had faced losses in the last couple of years due to continuous low prices. Owing to noncompetitive business conditions, many poultry players opted to close their business, which led to reduction in egg production, he observed.
Egg being a perishable item cannot be stored for a longer period, thus short supplies failed to fulfill demand. He hinted that the upward trend in egg prices would continue this winter and deficit in supply would only be bridged in the next 4-6 months.
