The limited supply and high price of eggs has emerged as one of the most pressing issues amidst the prevailing economic crisis, which has adversely affected the availability and affordability of a large number of food items. While this situation is far from being addressed, some of the so-called solutions presented by the authorities to restore the supply and to regulate the prices of eggs do not appear to be scientific, but opportunistic.
The Government’s decision to import eggs in response to the existing shortage and high prices of locally produced eggs, which has already received the approval of the Cabinet of Ministers “as a remedy to the inconvenience encountered by the customers due to the shortage of eggs in the local market prevailing at present and the price hike possible”, is one such decision. Even though this decision is welcomed by consumers and retailers, egg producers point out that it is not even remotely the solution to the issue.
The Government needs to focus on the root causes of the issues it is trying to address, rather than merely trying to ease the impacts of those issues. In the case of locally produced eggs, the main reason for the aforesaid situation is the cost of production and transport, both of which have increased roughly threefold over a span of a few months.
Therefore, if the Government is truly concerned about this issue, it should pay attention to reducing the cost of production or introducing some form of programme to increase production. It is through such measures that the Government could ensure the availability and affordability of eggs in the long run. However, instead of taking sustainable measures to solve the problem, the Government seems to be content with relying on temporary measures such as the importation of eggs, which are certain to face the same fate as the programme to provide eggs at Rs. 55, which did not last more than two days.
The Government’s response to this issue should definitely look into the allegations that middlemen and certain large-scale business operators are controlling the prices of eggs through the eggs that they release to the market. This is an allegation many have raised, including egg producers and consumer rights activists who have knowledge about this issue. Introducing effective measures to curtail the earning of undue profits and the controlling of the egg market by middlemen and businessmen is the second-most important measure that the Government should take. Even if this does not help address the lack of availability of eggs, at least it would ensure that eggs are provided to the market at the lowest possible price.
The Government’s plan to import eggs is an unwise decision, and not only because it harms the local egg production industry or because it is a short-term solution. At a time when the country is struggling to manage its scarce foreign reserves, importing eggs will increase the burden on foreign reserves and contribute to widening the trade deficit.
The Government’s decision is not only inadequate to provide effective solutions to this issue, but it is also detrimental to the egg industry. Even if imported eggs are provided at a lower price, if it destroys the local egg industry, it is not a victory or a solution. It is essentially an act of protecting consumers in the short term at the cost of an industry, and the Government should be wise enough to understand this.