• Documentation sent to Animal Health Dept for greenlight
• Presidential Advisor moots collective agreement for industry 

With widespread complaints from customers about the high price of eggs despite the imposition of a maximum retail price (MRP), the State Trading Corporation (STC), which is responsible for importing eggs, is awaiting the approval of the Department of Animal Production and Health (DAPH) to proceed with the necessary imports in order to stabilise the market prices.

The State Trading Corporation has handed over all the relevant documents and details with regard to the process of the importation of eggs from India to the DAPH, according to STC Chairman Asiri Walisundara.

Speaking to The Daily Morning yesterday (23), he said: “The relevant Indian officials have examined the documents that we submitted and they have sent the necessary confirmed data back, which include a certificate as well. We submitted these original documents and certificates to the Director General of the DAPH (Dr. Hemali Kothalawala). We are awaiting the review of our application to import eggs from India. The DAPH should let us know if they can grant us permission to import or not.” 

He further added that he hopes that this approval process will be finalised soon in order to commence the importing process.

The STC held a discussion with the Committee on Public Enterprises (COPE) and the Consumer Affairs Authority (CAA) on 20 January regarding the matter and, speaking during the same, Dr. Kothalawala said that eggs can only be imported from Bird Flu-free countries which have been declared so by the World Organisation for Animal Health. 

“We agree that India is the second largest egg exporter. But, most of the countries that India exports eggs to, including Japan and the United Arab Emirates are affected by the Bird Flu at the moment. Those are not Bird Flu-free countries like Sri Lanka. The cost of the production of an egg for small-scale egg producers is approximately Rs. 45 while for large scale egg producers, the cost approximately ranges from Rs. 34-37.”

During the said discussion, Opposition Parliamentarian Patali Champika Ranawaka requested the CAA for a price equation in order to determine the price of an egg along with the cost of production of an egg, as the Government is struggling to continue the school meal programme due to the hike in the prices of eggs. 

“The CAA determines the price of an egg at different rates while the producers are reluctant to provide eggs at those prices. Is there a price equation to determine the price of an egg, and how much is the cost of production? What is the profit gained by the producers and the distributors? The Government has initiated a school meal programme for 2,100,000 schoolchildren but it is difficult to carry out this programme with this increased price of eggs, which is a source of protein for the children. We can see that the egg producers are gaining massive profits from this.”

Further, Government MP Mahindananda Aluthgamage, also airing views during the said talks, added that the retailers agreed to sell eggs at Rs. 40 only when the Government decided to import eggs. “When the Ministry of Trade, Commerce, and Food Security declared that they are making plans to import eggs, the retailers promised to sell eggs at Rs. 40. We actually do not need to import eggs from India or any other country. What we request is to provide us with a reasonable price for eggs for at least Rs. 43-45.”

Chairman of the COPE, Prof. Ranjith Bandara said during this discussion that producers have pointed out that the cost of production of an egg is approximately Rs. 38, while taking the expenses incurred during the production into account. “An egg producer has informed me that they are able to produce one egg at approximately Rs. 38, while considering expenses such as the poultry feed, the electricity and water bills, cages and other fixed expenses. The CAA was established to protect consumer rights but the majority of the violations of consumer rights is caused by the CAA itself.”

Due to the surge in the prices of eggs in the market, the Cabinet approved the proposal by Minister of Trade, Commerce and Food Security Nalin Fernando to import eggs in the beginning of January. However, the DAPH said that they cannot grant permission to import eggs from India or Pakistan as outbreaks of Bird Flu have been reported from both countries recently.

Meanwhile, Reuters reported yesterday that India is set to export a record 50 million eggs this month, boosted by sales to Malaysia, where there have been acute shortages as soaring feed prices caused by the Ukraine war forced many small-scale farmers to cut output, quoting industry officials.

Middle Eastern countries, including Oman and Qatar, are the main buyers of eggs from India, but over the past few months, Indian hatcheries have received large orders from surprising quarters as output fell in some of the world’s top suppliers. The biggest such unexpected order came from Malaysia, which used to export eggs to Singapore and other Asian countries.

The Reuters report added, quoting Kumar of Ponni Farms, that countries such as Singapore and Sri Lanka could be next in line to buy from India in coming months 

Meanwhile, the President’s Media Division (PMD) in a press release stated that the matter was discussed at length during a discussion on the issues related to the chicken and egg industry chaired by Senior Advisor to the President on Food Security Dr Suren Batagoda and was held at the President's Media Centre last morning (23).  

“Dr Suren Batagoda pointed out that most of the issues related to the industry could be solved by way of coming to a collective agreement among all the stakeholders and by determining the prices of egg and poultry products accordingly. He further said that the President intends to turn the poultry and egg industry into an export industry and that all those involved in the industry should work collectively for the advancement of the industry,” the press release stated.

It added that the Chairman of the Egg Trade Association, the Chairman of the Restaurant Owners Association, the Chairman of the All Ceylon Egg Production Association and the Chairman of the National Farmer Association Board expressed willingness to reach a collective agreement for the advancement of the poultry and egg industry and that they had appreciated the intervention made by the President's Office for the security of the industry.