Closing Assam’s Egg Supply Gaps

Spiralling prices of essential commodities have exposed the vulnerabilities of retail consumers in Assam to price shocks. Consumers will remain trapped in unending cycles of price hikes unless local production increases to close the demand-supply gap. An abrupt jump in egg prices, with retail prices surging to Rs 9 to 10 per egg, is a stark indicator of how soaring prices of essentials are tearing into household budgets. Dr Himanta Biswa Sarma, the Chief Minister, proposed setting up an egg production unit with a daily capacity of one lakh in each of the state’s 126 assembly constituencies, laying a clear roadmap for self-reliance in egg production. Achieving this goal will be necessary to stop becoming complacent over incremental increases in local production. Even though production has gone up a lot, the gap between supply and demand is getting bigger because the population is growing and more people want eggs and egg-based dishes—especially those looking for healthier, protein-rich meals—forcing traders to buy many eggs from outside the area to fill the gap. Chief Minister Sarma attributed the sudden rise in egg prices to an “egg syndicate” operating in the state, with someone collecting illicit taxes on eggs procured from outside the state and local egg traders inflating the prices to match the prices of the lots coming from outside and subjected to illegal taxation. His idea to tax eggs brought in from outside the state and boost local production is a practical way to tackle the syndicate and make sure locally produced eggs are available at a fair price, as long as the goals in the plan are met. Establishing an egg production unit in each assembly constituency will also generate huge livelihood opportunities along the entire production and distribution value chain, as proposed. Creation of new livelihood avenues in agriculture and allied sectors is crucial to reverse the outmigration of rural youth to different states as unskilled workers. A proactive push from the state government creates a new opportunity for rural youth to re-engage in the local economy, especially by focusing on rural youth to re-engage them in the local economy based on agriculture and allied sectors. Industry estimates show that a large-scale layer unit with 1 lakh birds typically involves a capital expenditure to the tune of Rs 10 to 12 crore. Getting government subsidies, like interest discounts on bank loans from different central government programs and suggested financial help from the state government, can make the project more financially viable. As poultry feed accounts for nearly 70% to 75% of total egg production costs, the availability of feed at affordable prices will be essential for keeping egg prices under control, even when the state is self-reliant in production. Local availability of mustard oil cake, called ‘Kholihoi’ in Assamese, significantly reduces feed production costs and, thereby, ensures feed affordability for the egg production units. Mapping the local mustard oil mills will help establish an efficient supply chain for the feed production units. As the state is also seeking to become self-reliant in edible oil production, boosting mustard oil production remains a priority for the government. Despite being endowed with favourable agroclimatic conditions for growing mustard seeds, the state’s own production can meet only 20% of the total edible oil demand, and 80% of the demand must be met through procurement from outside the region. The over-dependence on supplies from outside also keeps the prices of edible oil in the state volatile and exposes both households and commercial consumers – hotels and restaurants, food vendors – to sudden price shocks, which traders seek to attribute to a rise in prices at sources. The state unlocking its potential in mustard oil production can ensure increased availability of both edible oil and mustard oil cake for feed production units at reasonable prices. Setting up more mustard oil expeller units in each assembly constituency will greatly help create many job opportunities in rural Assam and along the supply chain to urban markets in the state. The commercial viability of the established mills and feed production units hinges on the availability of an adequate quantity of raw mustard seeds at affordable prices. This calls for expanding the area under mustard seeds and also increasing productivity per hectare. Since the productivity of mustard seeds is much lower than the national average, it is important for the Agriculture Department to create a clear plan to boost productivity by making quality seeds available, using new farming methods, minimising losses after harvest with proper storage and processing, and initiating changes in the sector. Assam can truly realise the timeless National Egg Coordination Committee campaign – Sunday ho ya Monday, roz khao ande – only when the state becomes self-reliant in egg production and can make eggs available at reasonable prices.