In recent years, egg prices in Bangladesh have surged dramatically.
While eggs in India are priced at around 5-5.5 Indian Rupees (approximately Tk7-7.5 in Bangladeshi currency), in Bangladesh, the price of eggs has soared to Tk15 per piece.
Egg prices in Bangladesh have remained consistently high for several years, usually above Tk10 per egg.
However, in 2024, the price reached Tk15, putting additional pressure on consumers who are already struggling with the rising costs of daily necessities such as fish and vegetables.
Small farmers attribute this price hike to production disruptions caused by severe floods in the southeastern region, which impacted poultry farms.
These disruptions led to a daily reduction in egg production by five million eggs, contributing to market instability.
Impact on low-income consumers
The rapid increase in egg prices has disproportionately affected low-income consumers, who are now turning to eggs as an affordable source of nutrition.
This shift comes at a time when other food prices have also increased dramatically.
In Dhaka markets, potatoes, a staple food, are priced at Tk60-65 per kilogram, and most vegetables are being sold at Tk80-120 per kilogram, with certain items like tomatoes, carrots, and beans reaching prices beyond the reach of many.
Amidst these challenges, eggs have become a primary source of protein for low-income households. However, as egg prices continue to rise, even this option is becoming less affordable.
High egg prices
The main driver behind the high cost of eggs in Bangladesh is the significant difference in the cost of poultry feed.
Poultry feed accounts for 75% of egg production costs, and the price of feed in Bangladesh is significantly higher than in India.
According to the Bangladesh Poultry Association, poultry feed costs Tk36 per kilogram in India, compared to Tk60 per kilogram in Bangladesh.
This nearly double cost is reflected in the price of eggs and broiler chickens.
The cost of day-old chicks, which farmers purchase to raise for egg production, is also much higher in Bangladesh.
In India, the price of a chick is Tk25-35, while in Bangladesh it ranges from Tk80-120, sometimes even going higher. Additionally, medicines for chickens are three times more expensive in Bangladesh than in India.
Due to these factors, the production cost of an egg in India is around Tk5, while in Bangladesh, it exceeds Tk10.5. Similarly, the cost of producing broiler chickens in India is Tk82, whereas in Bangladesh, it is Tk170.
The higher costs in Bangladesh are primarily due to the price of poultry feed, which is influenced by a variety of factors, including a reliance on imported feed ingredients like maize and soybeans.
Feed costs and their impact
The price discrepancy in poultry feed stems from differences in local production and import dependency.
India and Pakistan, for example, produce a significant portion of the maize and soybeans used in poultry feed, whereas Bangladesh imports 60-70% of these essential ingredients.
The additional costs associated with importing feed—such as shipping fees, taxes, and currency fluctuations—make feed significantly more expensive in Bangladesh.
Other contributing factors include higher costs for electricity, fuel, and transportation in Bangladesh, which further inflate production expenses.
Additionally, there are extra charges such as ship rental fees and advance income tax on imports, all of which add to the overall cost of producing eggs and chickens.
According to a survey conducted by the Bangladesh Tariff Commission, the price of poultry feed in Bangladesh is 37% higher than in India and 46% higher than in Pakistan.
With 80-85% of the cost of egg production going into poultry feed, it’s clear that feed prices play a critical role in the overall cost of eggs.
Conflicting data
There is also a lack of clarity regarding the actual production of eggs in Bangladesh.
The Bangladesh Poultry Industries Central Council (BPICC) estimates that the country’s daily egg production is 45 million eggs.
However, due to the floods, this has decreased by 5 million, bringing production down to 40 million eggs per day.
To address this shortfall, the government permitted the import of 45 million eggs from India, which only meets the demand for one day.
In contrast, the Department of Livestock Services reports that daily egg production is much higher, at 63 million eggs.
Even after accounting for the loss of 5 million eggs due to the floods, production would still stand at 58 million eggs per day—well above the country’s estimated demand of 50 million eggs.
Despite these claims of surplus production, the market continues to experience instability, with prices remaining high.
Private estimates suggest that the country is actually producing 10 million fewer eggs per day than needed, contributing to ongoing shortages.
Beyond production issues, syndicates and market manipulation have been cited as major contributors to the high egg prices.
Fisheries and Livestock Adviser Farida Akhter blamed the role of syndicates in controlling the market, making it difficult to regulate prices.
These syndicates and middlemen allegedly exploit the market by artificially inflating prices.
Floods and heavy rainfall have further exacerbated the problem by damaging poultry farms, leading to production shortages.
The Bangladesh Poultry Association’s Organizing Secretary Md Iqbal said that flood-related production loss amounts to at least 30% of total egg production.
While the broiler chicken crisis can be resolved in one to one and a half months, it takes five to six months for layer hens to start laying eggs.
Many farms have been forced to close due to rising costs and unfavorable conditions, reducing the overall supply of eggs and increasing prices.
Flood-related impact
According to the Bangladesh Poultry Association, the floods in the southeastern region have reduced total egg production by about 30%.
While broiler chicken production may recover within one to two months, it takes five to six months for new layer hens to start laying eggs, leading to a longer recovery period for egg production.
Farmers have also faced difficulties in obtaining chicks, with many having to place orders up to six months in advance.
This delayed production cycle, combined with high feed prices, has forced many farms to shut down, further tightening the supply.
Farmers who lost chickens due to floods either had to sell them quickly at lower prices or lost their entire investment as the chickens died.
Bangladesh Poultry Association President Md Suman Hawlader said: “Thousands of farms have been forced to close due to recent floods. Some farmers had to sell their chickens quickly at lower prices because waterlogged conditions made it difficult to maintain their farms. Others lost their capital as their chickens died. All of these factors have contributed to lower egg production.”
Currently, there are 13,000 egg farms in the country, but in the last two years, around 6,000 farms have shut down.
Cost of egg production
According to data from the Bangladesh Animal Agriculture Society (BAAS), the cost of producing an egg in 2022 was Tk10.44, a sharp increase from previous years.
This rise is largely due to the cost of feed, which has increased from Tk15 per kilogram in 2013 to Tk58 in 2022. Other contributing factors include the rising costs of chicks, medicines, electricity, and transportation.
Each chicken consumes approximately 120 grams of feed to produce one egg.
With feed prices at Tk58 per kilogram, the cost of feed alone for one egg is around Tk8.70.
When other expenses such as medicines, infrastructure, and labor are factored in, the total cost per egg reaches Tk10.44.
Egg Imports from India
To combat rising prices, Bangladesh has imported eggs from India. As of October 2024, four shipments of eggs had been imported, totaling 757,470 eggs.
These imported eggs are primarily white eggs, while Bangladeshi consumers generally prefer brown eggs. The price per dozen eggs from India is $0.56, or around Tk5.70 per egg.
After factoring in customs duties and other costs, the total cost of these imported eggs comes to around Tk8.50 per egg.
Despite the imports, the impact on prices has been minimal. Retailers report that the imported eggs are primarily purchased by bakery owners, while most consumers still prefer locally produced brown eggs. As a result, the high price of eggs in Bangladesh has not decreased significantly.
