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The government has approved the import of 45 million eggs as the price of farm chicken eggs continues to soar. Despite ongoing imports, egg prices have risen by Tk 10 per dozen over the past week. Retail prices have now reached Tk 175-180 per dozen, up from Tk 165-170 just a week earlier.
Over the past month, egg prices have surged by Tk 30 per dozen in three separate phases, making them increasingly unaffordable for many consumers.
According to traders, the sharp rise iegg prices has been largely driven by an imbalance between supply and demand, caused by a decline in local production due to recent floods and heatwaves, leading to a market shortage.
In response to the persistent volatility in the egg market, the Ministry of Commerce on Tuesday authorised seven designated firms to import eggs to stabilise prices and ensure the availability of this essential commodity.
The firms granted permission to import eggs are M/S Mim Enterprise, M/S Tawsin Traders, M/S Sumon Traders, Alif Traders, Himalay, M/S Prime Care Bangladesh, and M/S Zaman Traders. According to a statement from the ministry, this import licence will remain valid until 31 December 2024.
Egg prices in the country reached a record high in September 2023, when the cost of a dozen eggs surged to Tk 175-180. In response to the escalating prices, the previous Awami League government approved egg imports for the first time.
According to sources within the Ministry of Commerce, on September 18 last year, four firms were granted permission to import 40 million eggs in an effort to stabilise the market.
Imported and local price
Traders report that while each imported egg costs Tk 7.5, an additional Tk 3 per egg is incurred for transportation, labour, and wastage (due to spoilage). As a result, wholesale prices for imported eggs range between Tk 10.60 and Tk 10.70 per egg.
In kitchen markets on Tuesday, the retail price of eggs reached a maximum of Tk 180 per dozen, up from Tk 170 just a week ago, putting them out of reach for most people.
According to data from the Trading Corporation of Bangladesh (TCB) and market reports, the price of a dozen eggs at the end of October 2023 was Tk 145-150. Prices dropped slightly in January this year, ranging from Tk 140-145.
However, from June onwards, egg prices began to rise again, reaching Tk 150-160 per dozen. This price remained relatively stable through July and August before increasing again in September to Tk 165-170 per dozen.
Local production decline
Traders report that the country’s poultry production, a key source of accessible protein for low- and middle-income consumers, has seen a sharp decline of over 20 per cent.
This reduction has caused a market shortage, creating an imbalance between supply and demand and driving up prices.
Poultry farm owners attribute this drastic reduction to devastating flash floods in August, followed by an intense heatwave that further disrupted supply.
The floods, which submerged around 10-12 districts in the country, have led to the closure of many poultry farms. These districts accounted for 8-10 per cent of the country's total egg and poultry production.
Additionally, the extreme heatwave that followed the floods further reduced production by 10-15 per cent.
Industry insiders report that these combined factors have resulted in a production drop exceeding 20 per cent, significantly affecting the supply of this vital protein source.
Farm owners also point to "excessive middlemen" as a major factor behind the price rise. They claim that after leaving the farm, the price of each egg increases by around Tk 3 before reaching consumers—an increase of over 26 per cent.
Flood impact cripples production
Tafazzal Hossain, owner of Ajirin Poultry in Maona Union, Gazipur, told The Business Post that floods in districts such as Feni, Lakshmipur, and Cumilla devastated many poultry and egg farms, leading to a near-complete halt in production in those areas.
“As a result, eggs and poultry are now being supplied from other districts to meet demand, contributing to the supply shortage. Additionally, many chickens have died due to the extreme heat, while those that survived are producing less, causing further shortfalls in the market,” he said.
“My farm has seen a 10-15 per cent drop in production over the past month due to the heat,” he added. Hossain also noted that middlemen are significantly driving up prices in the market. “We sold eggs on Tuesday and Wednesday at Tk 11.10-11.20 each. Those same eggs are being sold in Dhaka’s kitchen markets at Tk 14.16 each. That is an increase of nearly Tk 3, or 26 per cent, after leaving our farm,” Hossain explained.
Daily production drops to around 10 million eggs
Foyez Ahmed, an executive member of the Bangladesh Poultry Industries Association (Feni district), explained that prior to the floods, the Department of Livestock estimated that 40-45 million eggs were produced daily across the country, with Feni district alone contributing 600,000 eggs, accounting for approximately 1.5 per cent of total production.
Due to the devastating flooding in August, 2,000-2,500 poultry farms in Feni were shut down. Currently, daily production has dropped to around 10 million eggs, which is insufficient to meet local demand. The situation is similar in other flood-affected districts.
The Ministry of Fisheries and Livestock reported that in August, 86 upazilas across 12 districts in the Chattogram, Sylhet and Khulna divisions were hit by sudden flooding. The floods caused significant damage to infrastructure, submerging numerous cattle and poultry farms.
In addition, large quantities of animal feed, including poultry and livestock supplies, were destroyed.
Price cap efforts unenforced
At the start of September this year, as egg and poultry prices continued to rise, the Department of Agricultural Marketing (DAM) set price caps for both commodities. The retail price for a dozen eggs was set at Tk 142.44.
However, by Tuesday, retail prices for a dozen eggs had surged to Tk 175-180, up from Tk 165-170 just a week earlier.
Similarly, according to the government-imposed rates, broiler chicken should be sold at a maximum of Tk 180 per kilogram, while Sonali chicken should be available at Tk 270 per kilogram.
Despite these measures, the price caps have yet to be effectively enforced, and prices have continued to climb.
