Why are chicken and egg prices nowhere near govt rates?

Prices of eggs and broiler chicken, two major sources of protein, prevailing in Dhaka's markets have long surpassed rates set by the interim government in September, putting pressure on consumers plagued with persistently high inflation.

On September 15, the Department of Agricultural Marketing (DAM) announced that each dozen eggs should be sold at Tk 142 while each kilogramme (kg) of broiler chicken at Tk 179.

It stated that it had reached the rates in consultation with stakeholders, including the Poultry Industries Association, Feed Industries Association, Breeders Association of Bangladesh and World Poultry Science Association.

The Bangladesh Poultry Industries Central Council, Bangladesh Poultry Khamar Rakkha Jatiya Parishad, Animal Health Companies Association and Agro Feed Ingredients Importers and Trading Association were also consulted.

However, the DAM did not make public the calculations based on which it had arrived at the two rates.

In contrast, a dozen eggs sold at Tk 175 in the capital yesterday, up from Tk 160 a week ago. Broiler chickens sold at Tk 180 to Tk 190 per kg, up from Tk 170, according to data from the state-run Trading Corporation of Bangladesh.

Meanwhile, inflation had eased in September but is still hovering at over 9 percent, reflecting persistently high prices since March 2023, according to data of the Bangladesh Bureau of Statistics.

The Daily Star sought to know from industry insiders why markets could not sell the products at government rates.

The individuals included Mohammad Amanat Ullah, president of the Tejgaon Egg Merchants' Association, which accounts for a major portion of eggs supplied in the capital, and Kayser Ahmed, managing director of Diamond Egg, one of the country's largest egg producers.

Both cited a mismatch in demand and supply, especially a drop in production for recent floods and high temperatures.

The floods had affected the country's eastern parts.

However, the capital's supply of eggs mostly comes from western regions, such as Tangail, Jashore, Thakurgaon, Pabna, Panchagarh and Rajshahi, alongside adjoining areas like Narsingdi and Gazipur.

On the other hand, average temperatures in September ranged from 25.4°C to 31.5°C, according to the Bangladesh Meteorological Department.

This was a little high for the comfort of layer chickens necessitating settings of 22°C to 26°C but within the 26°C to 28°C range required for marketable-age broiler chicken, according to Bapon Dey, head of the poultry science department at Bangladesh Agricultural University.

The demand-supply mismatch assumption was contradicted by Sumon Howlader, president of the Bangladesh Poultry Association, a platform of marginal farmers.

Currently, farms around the country produce 4.5 crore eggs every day while the demand is about 4 crore. As such, floods and high temperatures can lead to a production drop by 20 to 25 lakh, which should not affect the market, he said.

In case of broiler chicken, there were too many intermediaries between farmers and end consumers, for which the price went up, he said.

Mohammad Amanat Ullah of Tejgaon Egg Merchants' Association recommended a government review of the prices every 15 days. He also believes increased production of fish and winter vegetables could reduce egg and broiler chicken prices.

The state agencies set rates based on figures intentionally inflated to appease government high-ups, alleged Kayser Ahmed of Diamond Egg, citing that the sole solution was to increase production.

There is a lack of proper market management as syndicates are active setting prices at their whims and citing excuses that production costs are too high, said Farida Akhter, adviser to the Ministry of Fisheries and Livestock.

The Directorate of National Consumer Rights Protection (DNCRP) is trying to control the rates, but the problem is that the prices go down during market drives and afterwards go up again, she said.

The DNCRP held a meeting with businesspeople concerned on September 26.

At the meeting, Harun or Rashid, vice-president of Tejgaon Egg Merchants' Association, advocated for government monitoring from farms to wholesale warehouses and retailers.

A section of dishonest traders is taking advantage of lapse monitoring, said Fakir Muhammad Munawar Hossain, director for operation and laboratory of the DNCRP.

He advocated for taking out intermediaries by adopting a farm-to-table movement.