Prices of eggs have been high since the Eid-ul-Azha holidays. The direct effect of this price hike has been on lower-income people. Retailers are blaming the wholesalers for the rise in egg prices, while the wholesalers blame the shortage in supply. However, the real reason behind the rise remains unclear amid the blame game. 

Eggs that were being sold at Tk9 at the wholesale level are now being sold at Tk13 to 14 at the retail markets. At the retail level, four pieces of eggs were priced at Tk55 and 12 pieces were sold at Tk155 to 170. 

It was observed at Kaptan Bazar and Tejgaon egg wholesale markets earlier this week that 100 eggs were being sold for Tk1,800 to 1,100. Therefore, an egg is being sold at Tk11 at these two markets. These eggs are being sold for Tk14-15 across the capital. The prices have gone up sharply by Tk2 per piece within a very short period. 

The wholesalers claim that there is a need for more supply of eggs in the market. The wholesalers complained that egg producers fix the rates, and the sellers are bound to follow them. Meanwhile, the companies that sell at low prices have limited production capacity. 

Moreover, the price of eggs increases due to extortion in the name of city corporation tax on egg carts, misrule of middlemen and the regulations of various associations. Retailers say they can only get Tk1 per egg on a good day. They also admit that the farmers at the grassroots level sell eggs at a low price, but the common buyers cannot avail of those eggs at cheap rates.

Change of hands and phone calls

Members of egg trader’s associations say that the price of eggs increases due to the change of hands of eggs. They also alleged that the price of eggs is determined through mysterious phone calls. A wholesale egg trader in Kaptan Bazar, requesting anonymity, said each trader buys eggs at different prices. Some buy at Tk9.61, some at Tk10 while others might be charged Tk10.50 for the same egg. But they must sell at a common market price that is fixed by their association.

Rezaul Karim, a wholesale egg trader in Kaptan Bazar, said: “The eggs are bought and sold at least four to five times before they reach the end customers. This is the main reason behind the high prices. We sell eggs for Tk10.5 at the wholesale level. But the same egg reaches the customers at Tk14-15. Who controls the retail market? Everyone blames the wholesalers, but we can only earn Tk10 per 100 eggs.”

The businessman also claimed that the government has banned egg storage. But in reality, it would have been better if they allowed storage facilities for eggs. If the traders could keep eggs in cold storage, then the price of eggs would not increase so much. When there was a shortage of eggs in the market, the traders could supply them from their storage.

This businessman also blamed the rising cost of farming for the high prices of eggs. 

“Compared to before, the cost of farming has increased a lot. Poultry feed, in particular, is very expensive. Why is the government not paying attention to this? Why can’t they reduce the price of poultry feed,” he questioned.

President of the Tejgaon Egg Association Aman Ullah said: "The main reason for the increase in the price of eggs is that the supply is less than the demand. There is no scope for creating a syndicate here, as eggs are perishable items. The allegation that we form syndicates and increase prices is completely baseless. There are other associations as well. 

“According to official data, 40 million eggs come to the market every day. But we get only 17-18 lakh eggs here. Where are the rest of the eggs?” he questioned. 

"Yesterday (Thursday), officials of the Directorate of National Consumer Rights Protection (DNCRP) came to the market and fined me Tk50,000, alleging that I had fixed the price of eggs in the market. I have placed my faith in the Almighty. I have nothing else to say. There are associations in Savar, Kaptan Bazar, and hundreds of other places. However, they choose not to visit those locations. They come to Tejgaon because it is a well-known market,” he alleged. 

The businessman also complained that the government does not do anything about the reasons behind the increase in the price of eggs.

Egg prices vary from company to company

There are allegations that various companies manipulate the market, and they do not maintain the same prices either. They produce the same eggs but sell them at different prices. 

A wholesale egg trader, Shahaz Uddin (Saju), said: “What is the reason for the difference in the price of eggs? That must first be discovered. Six to seven companies supply most of the eggs to the market. Their wholesale egg prices are not the same. Each sells eggs at different prices. Companies should figure out the cost of production. The main reason for the price increase is these companies.”

He said: "If the companies sell at a low price, how can we sell at a high price? We bought 100 eggs for Tk1,130. We sell it for Tk1,140. Many traders are buying 100 eggs for Tk961 and selling them at our prices. Therefore, the question arises as to why we can’t buy at their prices. This is because those companies supply eggs to a few traders in limited quantities. The fact that the companies are manipulating the egg market should be looked into by the consumer rights department or the relevant authorities. Only then will the price of eggs decrease.”

According to sources at Kaptan Bazar, Kazi Farms is currently selling eggs at the lowest price. It is selling eggs for Tk9.61 per piece. On the other hand, People's Egg is selling eggs at the highest price, at Tk11.30 per piece. That is, the same egg is being sold at different prices. Also, Diamond Egg is selling each egg at Tk11 while Paragon is selling eggs at Tk10.5. On the other hand, Nourish Company is selling the same egg at Tk10.7.

Two of the traders in Kaptan Bazar sell eggs supplied by Kazi Farms. Other traders complain that these two sellers buy eggs at low prices but sell them at high prices. Md Wasim Ullah, a staff member of M/S Zahirul Traders, said: “We need 2 to 3 lakh eggs daily. Kazi Farms supplies only 10% of our demand. Therefore, we are not getting such a large supply from one company. We are buying eggs from different companies at different prices. If we or everyone could buy eggs at a lower price, we would sell them accordingly.”

DNCRP Director General AHM Safikuzzaman said action is being taken against unscrupulous traders behind the rise in egg prices. 

"We have already conducted raids to find those who are behind the increase in the price of eggs and have fined them. This campaign is continuing. Not just eggs, we are tirelessly working to control the rise in prices of all the commodity items, including potatoes, onions, and beef.”

However, he pinned the blame for the difference in the price of eggs on various companies and said: "We don't have enough manpower. We can't do everything we want. I have spoken several times about increasing our manpower. Now, if the government wants or if the ministry thinks that it is necessary to increase the manpower, then they will increase it. Otherwise, we have nothing to do. The current situation is that we need to appoint manpower up to the upazila level.”