How syndicates push up egg price
The retail price of eggs has risen to a large extent, inflicting extra pressure on consumers.
Farmers and traders have blamed three factors for the predicament – high cost of poultry feed, low production and market manipulation by syndicates.
The egg price started to see big jumps after the commencement of the Russia-Ukraine war in February 2022. It exceeded the threshold of Tk 150 per dozen in August. There have been insignificant price fluctuations since then.
The traders in Dhaka determine a price and text it to local farmers through mobile. If a farmer agrees with the price, the middlemen reach his farms with transport.
It is true that the price of poultry feeds soared due to the Russia-Ukraine war, but it came down later. Traders said they saw no significant surge in prices of poultry feeds throughout the last five to six months, rather the prices declined in some cases.
Hence, they see no logic to blame the high price of poultry feed for the exorbitant retail price of eggs.
The farmers rather voiced concerns over market dynamics and manipulation by intermediaries.
Faruk Ahmed, owner of a poultry farm in Narsingdi, said he collects 10,000 eggs daily from his farm of 12,000 chickens. He sold the eggs at Tk 10.70 each to traders on Friday.
During a conversation with Prothom Alo on Saturday, Faruk revealed the process of price manipulation in detail.
According to him, the traders in Dhaka determine a price and text it to local farmers through mobile. If a farmer agrees with the price, the middlemen reach his farms with transport. They do not collect the eggs if a farmer demands a higher price.
Faruk vented disappointment, alleging that the process disproportionately benefits the middlemen over the farmers and ends up consumers paying an unreasonably high price.
Mejbaul Marfi, another poultry farmer of Joypurhat, came up with similar remarks. He said they are left with no room for price negotiation while selling eggs in the markets.
Conversations with farmers and traders revealed the middlemen’s tight grip over price determination. Some big farms, especially corporate ones, also play a role in fixing the price.
The price drops quickly when the authorities conduct drives in the markets, but it rises later.
However, Shamsul Arefin, president of Bangladesh Poultry Industries Central Council (BPICC), denied the allegations, saying the egg market lacks coordination. But it cannot be said that the big companies are controlling the market.