ECONOMYNEXT – Sri Lanka is looking to impose a price ceiling for eggs, as prices in the market rise ahead of several key religious and cultural holidays.
The Ministry of Agriculture and Plantation Industries has submitted the price proposals to the Consumer Protection Authority for review, before issuing a gazette, a statement by the official government news portal said.
“The production cost of an egg is 30 rupees, but the price of an egg being sold remains high at 60 rupees,” Minister of Agriculture and Plantation Industries Mahinda Amaraweera was quoted in the statement.
The decision to impose a maximum retail price for eggs was taken after a discussion held at the Ministry on Monday (5), which considered the production costs and insufficient production of eggs in relation to consumption levels ahead of the Easter, Ramadan, and the Sinhala and Hindu New Year.
The production of eggs in this country is 5.8 million eggs, and the daily egg consumption requirement is 7.5 million eggs, officials pointed out. There are currently 130,000 layer mothers and the need is 80,000.
Amaraweera queried why egg production did not increase when there were more mother animals than the requirement.
“A maximum retail price for eggs should be imposed to protect the egg producer, consumer as well as the retailer,” Amaraweera said.
Last year, Sri Lanka’s egg production was heavily affected by price controls imposed by the Consumer Affairs Authority, as chicken feed prices went up amid local forex shortage and a global commodity bubble. The government had also imposed restrictions on maize imports which poultry farmers use for chicken feed.
Following the price controls on eggs imposed last year, and ensuing shortages in the market, Sri Lanka had to import eggs from India.
Sri Lanka’s eggs were around 20 to 25 rupees before the rupee collapsed in April last year from 200 to 360 to the US dollar. Sri Lanka’s chicken meat and egg prices are generally higher than the world due to import licensing on maize which has pushed up production costs. (Colombo/Mar6/2024)