Poultry farmers in Namakkal, Tamil Nadu, are facing severe losses. The region’s poultry industry is suffering due to delays in egg exports. Specifically, eggs meant for the Gulf countries are stuck in transit because of ongoing conflicts in the Middle East. Consequently, Namakkal’s poultry farmers are forced to sell eggs at drastically reduced prices.
Exported Eggs Stranded Due to Middle East Tensions
On February 28, about 70 containers carrying 3.5 crore eggs left for the Gulf countries. However, due to the conflict in the Red Sea and the Middle East, the shipment is stuck midway. Each container carried approximately 5 lakh eggs, with an estimated cost of ₹4.80 per egg. This results in a potential loss of ₹16-17 crore, not including the additional shipping and fuel expenses.
Local Market Flooded with Surplus Eggs
Namakkal produces 6-7 crore eggs daily, accounting for 95% of India’s total egg exports. With the halted exports, eggs originally meant for international markets are now accumulating in the domestic market. This sudden surplus is overwhelming local demand. Additionally, the short shelf life of eggs, especially in rising temperatures, is forcing farmers to sell at much lower prices. Farmers are now selling eggs for ₹3.5 each, even though the production cost is around ₹4.5 to ₹5 per egg. This has led to direct losses for poultry farmers.
Potential Closure of Small Poultry Firms
If the export process does not resume soon, many small poultry businesses may face closure. The ongoing crisis is already significantly affecting the poultry sector.
Losses and Falling Prices in the Market
According to media reports, Jahan R, Secretary of the Egg and Poultry Products Exporters Association, revealed that uncertainty in international markets led to a price drop. He confirmed that farm gate prices fell by ₹0.50 last week. “The production cost of an egg is approximately ₹5, including feed and other expenses. Farmers are now selling eggs for ₹3.50 each, resulting in a loss of ₹1.50 per egg,” he said. With daily production of approximately 7 crore eggs, this crisis causes daily losses of about ₹10.5 crore for the poultry sector.
Efforts to Find Alternative Export Routes
Exporters are working with shipping companies to find alternative routes to reach the UAE. However, shipping lines are hesitant to take risks due to the ongoing conflict.
