Retail prices of eggs have shot up to a record high of Tk 32 for a set of four and industry operators blame the hike on middlemen.

A section of traders were also alleged to have created an artificial crisis in the market by spreading a rumour that egg prices would surge further. Panic buying reigned, as the prices of other sources of proteins, like fish, are already on the rise.

Other factors such as a low level of production in summer and rainy seasons and a decline in the production of duck eggs also contributed to the rise in egg prices.

The overall price for four eggs rose by 14 percent last weektoTk32fromTk28.

To curb eggs prices, the poultry industry has moved to open 15 stores in Dhaka city, where four eggs will be sold for Tk 26, according to operators.

"Egg prices are soaring due to the activities of middlemen, like retailers and hawkers," said Taher Ahmed Siddique, president of Bangladesh Egg Producers Association, claming that the wholesale price of eggs has declined but traders are not cutting back on their prices.

Egg wholesalers in Tejgaon, one of the main markets for eggs, claimed that the price for 100 pieces of eggs stood at Tk 660-670, down from Tk 700 a couple of days ago.

Customers are yet to benefit from such a drop in prices. Some traders at Karwan Bazar said that they bought a hundred eggs for as much asTk 700. They were demanding Tk 720 for the same yesterday.

“We bought 100 eggs for Tk 700. You will get 100 eggs (brown) forTk 720," said Mohammad Razu, an egg-seller at the Karwan Bazar kitchen market.

“Egg prices have increased due to an increase in the cost of transportation during the downpour last week. On Sunday, the wholesale price for a hundred eggs was between Tk 660-670," said Nurul Islam, an egg wholesaler atTejgaon.

The prices of eggs were stable for nearly a month at Tk 28 for four eggs before it began to rise towards the end of June, amid a gradual decline in the supply of duck eggs.

Industry insiders said demand for eggs is now high and the daily production of 1 crore units does not meet demand. The supply of eggs was affected heavily after bird flu ravaged tens of thousands of layer poultry farms.

"Retailers follow simple methods to determine the prices of eggs. They increase Tk 1 if price increases by Tk 0.20 per egg," said Mizanul Islam Khan Masum, owner of Techno Poultry.

"Everybody in the trade knows that egg price increases this season. It creates an upward pressure on prices as middlemen want to buy more," he said.

Syed Abu Siddique, president of Bangladesh Poultry Industries Association (BPIA), said egg production remains low during the summer and rainy seasons.

He however complained of foul play by middlemen such as retailers.

"Rumours in the market exist that the prices of four eggs would rise to as much as Tk 40. This has also influenced market prices," Siddique said.

“But prices would soon fall as we are opening fair price shops,” said the BPIA president.

sohel@thedailystar.net