The metropolitan city is currently facing an artificial shortage of eggs, as supplies to bakeries and shops have decreased significantly, leading to a surge in prices. Despite an officially fixed price of Rs290 per dozen, eggs are being sold in retail for as much as Rs360 per dozen.
According to retailers, the supply of eggs from farms has dropped by 50%, exacerbating the gap between demand and supply well before the arrival of winter. This reduction in supply has resulted in the price hike.
To address this issue and ensure affordable prices, people say that it is imperative to crack down on elements contributing to artificial scarcity, such as hoarding. Failure to do so may lead to a further shortage of eggs and higher prices during the winter months.
The wholesale price of 30 dozen eggs has surpassed Rs9,900, with eggs being sold at Rs320 to Rs330 per dozen in the wholesale market. Poultry farmers are reportedly selling eggs at arbitrary prices, flouting the prices set by the Karachi commissioner.
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Eggs are being sold at Rs340 to Rs360 per dozen in various areas of the metropolis, contributing to a disruption in the supply chain to bakeries and shops.
During a survey conducted by The Express Tribune, it was revealed that small-sized eggs are being sold in most shops at prices comparable to larger eggs despite their lower weight.
Industry insiders reveal that the poultry business has been facing a crisis for the past two years, stemming from challenges such as fluctuating dollar values affecting the cost of imported feed and clearance issues at ports.
The increased costs of poultry, medicines, wages, and transport have significantly raised the production cost of eggs. Moreover, investors, facing losses in poultry, have shifted their focus to other sectors, resulting in decreased investment in egg production.
Eggs sold at the wholesale level, categorised by size, are currently priced at Rs280 per dozen for small-sized eggs and Rs330 per dozen for larger ones. However, milk shops and bakeries are selling these small-sized eggs at a higher rate of Rs340 per dozen with wholesale rate at Rs280 per dozen.
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Desi (organic) eggs have not seen as significant a price increase as farm eggs. They are currently priced at Rs40 to 45 per egg, offering a more economical alternative for consumers.
Within the poultry industry, sources indicate that the hoarding of eggs is a major factor contributing to the price surge. Eggs are being stockpiled months in advance for winter, leading to market disruptions and an imbalance between supply and demand.
Experts suggest that eggs can be stored for two to three months at 24 degrees Celsius, with extended shelf life if stored at lower temperatures. Large storage facilities in suburban areas and farms contribute to hoarding practices, further decreasing the supply of eggs in the market and contributing to rising prices. Immediate action is needed to address these issues and stabilize the egg market in Karachi.
Published in The Express Tribune, November 13th, 2023.
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