Tk280cr pocketed in 20 days by artificially raising prices of eggs, chicks: Poultry assoc

The Bangladesh Poultry Association (BPA) – a platform representing marginal farmers – has accused corporate syndicates and the Tejgaon Egg Traders Association of pocketing Tk280 crore by artificially inflating the prices of eggs and chicks over the past 20 days.

"The corporate groups have created instability in the country's egg and chicken markets," said Md Sumon Hawlader, president of the poultry association, in a press release issued yesterday.

"As prices were set based on the suggestions of corporate entities, without considering marginal farmers in the process, these corporate groups have taken an additional Tk280 crore by raising the prices of eggs and chicks in the last 20 days," he added.

According to the marginal farmers, corporate companies agreed to sell their eggs at Tk11.1, yet they deceitfully sold them for a minimum of Tk11.80 and a maximum of Tk12.50. Consequently, these eggs are now retailing at Tk14-15. This represents an increase of Tk2 per egg daily.

As a result, an additional profit of Tk8 crore has been generated from the sale of four crore eggs each day. Over the past 20 days, this amounts to a total of Tk160 crore taken from consumers, it added.

The association further alleged that the price of each chick was Tk30-35 until 15 September. However, since 16 September, the same chicks have been sold for Tk40-56. This price hike has allowed the companies to extract an additional profit of Tk120 crore from marginal farmers over the past 20 days through deceptive practices.

Sumon also alleged that the syndicates are backed by the livestock ministry, various officials from the livestock department, and several corporate companies in the country.

He emphasised the need for the government to implement strict oversight to dismantle these syndicates and establish fair pricing for all stakeholders.

He stated that to stabilise the egg and chicken market, it is essential to dismantle the poultry feed and chick syndicates and reduce the production costs for eggs and chickens. By doing so, the market will quickly return to a more manageable level.

The press release highlighted the syndicate's role in raising egg prices, explaining that they first collect eggs from farms and then distribute them to various locations in Dhaka during the night.

In the morning, the Tejgaon Egg Traders Association sets the prices and disseminates these rates through mobile SMS and Facebook, effectively enforcing them nationwide.

The association also pointed out that corporate companies dominate the feed and chick market.

Their influence is so significant that instead of the government setting the prices for feed and chicks, the producers are being subjected to the prices imposed by these corporations.

This dynamic has facilitated the formation of syndicates among corporate groups, alleged the marginal farmers.

Amanat Ullah, president of the Tejgaon Egg Traders Association, dismissed the allegations, stating, "Our association's capacity is to supply 15 lakh eggs per day, while the country's daily requirement is 4 crore eggs."

"Egg production has been disrupted primarily due to flooding, which is one of the key reasons behind the price increase," he told The Business Standard. 

He also highlighted the lack of accurate data on supply and demand as a major issue contributing to the market instability.