Egg producers deny liability for abnormal price rise

Egg, meat and feed producers of the poultry industry yesterday refused to take responsibility for the prices of eggs skyrocketing, claiming that they were selling those at reasonable prices. 

They instead claimed that a section of traders was making hefty profits capitalising on market volatility and making consumers pay higher prices.

The claims came at a seminar on the poultry industry's current state in Bangladesh organised by associations of the industry and Economic Reporters' Forum (ERF) on the latter's premises in Dhaka.

Egg producers said they were selling each egg to hatcheries at the government-announced price of Tk 10.50.

An egg should be sold at Tk 12 at consumers, thereby ensuring every party involved can make a profit, they said.

Other important factors like the high exchange rate of the US dollar against the taka, high import duty and transportation costs were also blamed for the sudden hike.

Recently, each egg was being sold at Tk 15 at the retail level, with the excuse being that there was a price hike at the producers' level.

However, producers at yesterday's seminar denied the allegation. They also denied that a syndicate controlled the egg markets.

"It is a false allegation that a syndicate controls the egg markets," said Zahin Hasan, director of Kazi Farms Limited, a major egg producer.

Hasan added that chickens lay fewer eggs in hot weather as they consume less feed and more water.

Moreover, the supply of eggs was disrupted because of inclement weather and the consequent deterioration of the condition of roads and highways, he said.

The price of eggs had increased abnormally last year because people who used to drive the trucks used in transporting eggs went on a strike protesting a diesel price hike. He pointed out.

Shamsul Arefin Khaled, president of the Feed Industries Association of Bangladesh, blamed a section of traders for the price hike, claiming that egg producers were selling their produce at the price fixed by the government.

"Corporates control only 15 per cent of the production of eggs while 85 per cent is controlled by farmers at the grassroots level across the country. So, it is not true that a syndicate controls the egg markets," he said.

Four crore eggs are produced around the country daily, he added.

He blamed a 28 per cent devaluation of the local currency against the US dollar and high import duties on feed, saying that more than 70 percent of the ingredients for feed and medicine need to be imported.