Sri Lanka’s egg market continues to face instability, with prices rising to Rs. 50 just days after a brief dip. The main cause behind the price hike is the rising cost of producing eggs, which includes chicken feed, medicines, and vitamins. Farmers struggle to maintain affordable prices as their overheads surge. These high production costs make it challenging to sell eggs at lower prices without incurring losses.
Beyond production challenges, allegations have emerged that intermediaries are exacerbating the situation by hoarding eggs to create artificial shortages. These middlemen are accused of stockpiling eggs to manipulate market prices, leaving consumers to bear the brunt of artificially inflated costs. However, because eggs are perishable goods, hoarding can only delay sales for a limited time, meaning that any unsold stock will eventually spoil, leading to losses. This adds a layer of complexity to the allegations, as such actions could result in unintended wastage.
Last week, the country saw a temporary price reduction due to market adjustments and government interventions. However, the reduction did not last long as the costs incurred by farmers remain significantly high, forcing another upward price adjustment. The fluctuating prices have placed a heavy burden on households who rely on eggs as a daily food staple, as well as food service providers who depend on them for various products.
Industry experts argue that without proper regulation and more affordable input costs, the egg market is likely to remain volatile. There have been calls for stronger oversight into the behavior of intermediaries and efforts to make poultry farming more sustainable by addressing feed import costs and improving local production capabilities.
As the market fluctuates, both producers and consumers find themselves in a precarious position, hoping for long-term solutions to stabilize egg prices across the country.
