Despite an oversupply of eggs in the country, prices continue to rise due to market manipulation by a few large companies. According to government data, Bangladesh produces around 2,374 crore eggs annually, while the national demand is only 1,809 crore eggs, leaving a surplus of about 30%. However, traders are claiming shortages and raising prices daily. Over just a week, the price per dozen has increased by 20-30 taka, with open market rates now ranging from 170 to 180 taka per dozen.
Small-scale farmers have expressed frustration, stating that the majority of the poultry market is controlled by a few large corporations, which are manipulating prices despite the surplus. They claim that while consumers are paying higher prices, farmers themselves are not receiving fair compensation. In several markets across Dhaka, farm eggs are being sold for 58-60 taka per four eggs, significantly higher than the government-set price of 48 taka. Just last week, the price was 55 taka for the same amount.
Experts argue that weak market management is the primary reason for the price hikes, even though production exceeds demand. They believe that improved coordination between government bodies could help stabilize prices. Additionally, the rising cost of vegetables, fish, and meat is influencing egg prices. Seasonal factors have increased the demand for eggs, and the involvement of multiple intermediaries in the supply chain is further driving up prices.
The vice president of the Consumers Association of Bangladesh (CAB), SM Nazer Hossain, stated that the lack of government intervention is allowing traders to inflate prices for excessive profits. In the first two weeks under the new government, prices remained stable, but they began to rise afterward as no actions were taken to control the market.
Businessmen claim that the daily demand for eggs is 4.5 crore, but only 4 crore are being produced. However, government figures indicate that production is higher than demand. According to the Department of Livestock Services, during the 2023-24 fiscal year, the country produced 2,374 crore eggs against a demand of 1,809 crore, leaving a surplus of 565 crore eggs. Similar surpluses were observed in previous years as well, suggesting that the issue lies more with market control than actual supply shortages.
Small farmers and the Bangladesh Poultry Association (BPA) accuse several large corporations of creating a price-fixing syndicate. They specifically mention that egg prices are being manipulated by traders at the Tejgaon Egg Traders Association, who control prices through messages sent across the country. In response, the association denies these allegations, claiming they only supply 14-15 lakh eggs daily and do not have the capacity to control nationwide prices.
As for the reasons behind the rising prices, traders cite increased demand due to seasonal factors and supply disruptions caused by heavy rains. They suggest that egg prices may drop in the coming months as winter vegetables become available. However, some experts argue that the root of the problem lies in poor market management, with eggs changing hands multiple times before reaching consumers, each intermediary taking a profit, which inflates the price.
Researchers from the Center for Policy Dialogue (CPD) have found that while recent floods caused 14,421 crore taka in damages, the poultry sector was only minimally affected, accounting for just 1.79% of the total loss. Thus, the floods cannot be fully blamed for the rising egg prices.
Several large corporations, including Kazi Farms, have been accused of controlling the market. However, corporate representatives argue that government statistics on egg production are inaccurate and that a supply shortage is causing the price hikes. They claim daily production is around 3.5 crore eggs, not the 4.5 crore as reported by the government.
To address the price instability, the Ministry of Livestock and Fisheries recently set new prices for eggs and poultry, but market prices continue to defy these regulations. The Department of Agricultural Marketing has been tasked with determining fair prices, and discussions with traders are planned to address the issue. A special monitoring team has also been formed to ensure market regulations are enforced.
Ultimately, experts agree that the lack of coordinated market monitoring is allowing prices to spiral out of control, leaving consumers struggling to afford a basic source of protein.
Source: Daily Bonik Barta
