Egg prices could rise to Rs. 47 by December amid higher production costs

By The Pulseline News Desk

Egg prices in the country could increase to between Rs. 45 and Rs. 47 by December as poultry farmers grapple with rising production costs and increased demand, the Sri Lanka Livestock Producers Association has warned.

Association Chairman Ajith Gunasekara has said the gradual increase in prices was largely driven by a nearly 20% rise in the cost of raw materials used in egg production over the past few months.

The cost of producing an egg currently ranges between Rs. 32 and Rs. 34, while the farm-gate price stood at Rs. 35 and the retail market price was around Rs. 40 as of Monday (9), he has said.

Gunasekara has warned that prices could climb further if production levels decline, noting that some poultry farmers were considering selling their laying hens for meat to recover losses caused by escalating production costs.

Such a development could affect egg supplies and place additional pressure on market prices.

He has also pointed to the expected increase in demand from tourist hotels ahead of the December holiday season, warning that higher consumption could create supply constraints if domestic production fails to keep pace.

Industry seeks tax relief

Meanwhile, the association has urged the Government to reduce taxes on eggs and chicken, arguing that the additional tax burden is contributing to the high cost of essential protein sources.

Gunasekara has said taxes amounting to between Rs. 9 and Rs. 11 were imposed on each egg, while approximately 25% of the prices of chicken and eggs was collected as tax.

The association has called for the removal of taxes on these food items to improve affordability and ensure that consumers have access to reasonably priced sources of protein.

The warning comes amid concerns over the balance between production costs, farmer profitability and consumer affordability, with the poultry industry facing pressure to maintain adequate supplies while absorbing higher input costs.

If production costs continue to rise and some farmers reduce their laying operations, consumers could face further increases in egg prices during the year-end festive and tourism season.