Egg farmers in rural areas want to find a trader who will buy at a higher price. Egg traders in each city want to find a supplier who will sell at a lower price. The egg price in each city is determined by the supply of eggs to that city and the demand for eggs in that city. Cellphones have created an information network which empowers thousands of egg producers and traders to compare prices.
The poultry industry has grown as consumption has grown. The Household Income and Expenditure Survey shows that egg consumption per capita increased by 145% between 2005 and 2022, from 5.2 grams to 12.73 grams per person per day. Chicken and duck consumption increased by 285% during the same 17-year period, from 6.8 grams to 26.17 grams per person per day. This rapid growth shows clearly that there is no cartel which is limiting supply. New companies and farmers enter the poultry business whenever prices are high, showing that there is no barrier to entry. Economists say that a cartel (or “syndicate”) is not possible in a business where there is no barrier to entry.
Industry stakeholders say that it is not possible for producers or traders to form a cartel, because there are thousands of people buying and selling eggs every day, and information about the market price in each place is easy to obtain over via mobile phone. If anyone tries to sell at a high price, no one will buy from him.
The recent increase in egg price is attributed to a fall in egg production during hot summer months, and because many marginal egg farmers sold their hens (and stopped producing eggs) during the recent months of low egg prices (January to May 2026).
Dr Sabbir Hossain (28) is a veterinarian and farmer with 3,500 layer hens of Horipur village in Ghatail, Tangail. He said, "I know the price of eggs everywhere. The arotdars (wholesalers) who buy eggs from us cannot fix the price, and neither can we. In fact, there is no centre where the price is fixed." He said that information technology allows poultry farmers to get information about prices. On 17 September, he sold eggs for Tk 11 per egg, and made a profit. He made losses for many months when the price was low.
Nazrul Islam (52) is a small farmer in Luchia Nagarbari, Madhupur. He said that farmers like him sell eggs to whoever offers a higher price. "Because of mobile phones with internet, we can check the market price anytime." he said.
Jahangir Khan (42), runs Noor Dimer Arot (wholesale shop) at Pakutia, Ghatail. He buys about 20,000 eggs each day from farmers and small traders and sells them to wholesalers in Moulvibazar and Dhaka. "In the morning I get an idea of the day’s price, and then call farmers and traders to offer a price," he said. He explained that when demand increases in Dhaka and other cities, egg prices also increase in rural markets. "Farmers can sell at a better price because they can get market information via mobile."
Keramot Ali Khan (48), is one of the owners of Setu Enterprise in Porabari, Ghatail. He sells up to 100,000 eggs almost every day to wholesale traders in Kaptanbazar, Dhaka. "I buy mostly from traders in Tangail and Jamalpur districts. Whether I am buying or selling, the price depends on demand and supply," he said.
Currently about 2 million eggs are traded each day at Tejgaon, a small fraction of the 15 million eggs sold in Dhaka city each day. National production of commercial eggs is estimated at about 50 million eggs per day. Amanat Ullah, a leader of the Egg Traders Multipurpose Samity (association) told this author that “The price depends on supply and demand, it can’t be influenced by anyone.”
Kazi Farms auctions about 700,000 eggs each day at its sales centre in Ashulia near Dhaka city. According to Kazi Zahin Hasan, director of Kazi Farms, “We try to sell our entire stock of eggs each day, because eggs are perishable . Every morning, buyers submit their price bids and their desired quantity of eggs through our phone app. We examine the bids, and determine the highest price at which all our eggs will be sold. If we want to sell 700,000 eggs, and each bidder wants about 50,000 eggs, we only need to sell eggs to the 14 highest bidders. So our selling price will be the 14th highest price bid. We will sell to all of the 14 highest bidders at the same price, so they all feel that they are treated fairly. Economists call this a commodity auction with a uniform selling price, many buyers and sealed bids. Our customers have the option of buying from other sellers. They are buying from us because our price is competitive compared to other sellers. At present, the demand for eggs exceeds the supply, and our auction price is higher than it was a few months ago. In February, when the supply of eggs exceeded the demand, our auction price was only 7.43 Taka per egg. Every egg producer made losses for about five months this year. When demand is higher than supply, the price is high, and consumers are unhappy, but farmers make profit. When supply is higher than demand, the price is low, and consumers are happy, but farmers lose money. Prices of agricultural products like eggs and vegetables are never stable.”
