Wednesday Nov 27, 2024
Wednesday Nov 27, 2024
Wednesday, 17 April 2024 03:18 - - {{hitsCtrl.values.hits}}
By Charumini de Silva
The All Island Bakery Owners› Association has appealed to the Government not to halt the importation of eggs, emphasising that the survival of the bakery industry hinges on it.
Jayawardena expressed concern over what he described as an ‘egg mafia’ manipulating prices to the detriment of bakeries countrywide.
“Although we have historically opposed egg imports to support local industries, recent price hikes by egg producers have forced us to reconsider. Suspending egg imports would only exacerbate the situation, potentially leading to eggs priced as high as Rs. 100 each,” he told the Daily FT.
After the Government implemented price controls on eggs and maize import restrictions, resulting in a surge in egg prices to Rs. 65-70 each, Sri Lanka began importing 30 million eggs monthly. This led to the culling of the layer chick population and parent birds in hatcheries.
On 18 March 2024, the Cabinet of Ministers approved the importation of an additional 42 million eggs in preparation for the upcoming festive season. Previously, in December 2023, the Cabinet approved the import of eggs to meet demand until 30 April 2024. As a result, around 18 million eggs were imported at that time, but an additional 42 million eggs were considered necessary to cater to consumer needs during the festive period.
Jayawardena criticised egg producers for adopting a short-sighted approach, stressing that their industry›s survival is intertwined with the bakery sector. “If the egg producers think they can survive by causing difficulty for the bakery industry, it is wrong and only a short-lived approach. The egg producers need to understand that their industry is reliant on the hands of the bakery industry,” he asserted.
The sudden and unjustified increase in egg prices, Jayawardena noted, has severely impacted bakery production and sales, particularly during the Sinhala and Tamil New Year festivities. «Many of our members refrained from baking cakes due to the exorbitant egg prices, resulting in a 25% decline in sales compared to previous festive seasons,» he pointed out.
Despite assurances from the Trade Minister regarding price stabilisation, he claimed the egg prices have soared beyond expectations, reaching over Rs. 55 at the onset of the month. “The bakery industry had hoped for a price reduction before the festive season, but instead, we faced escalating costs driven by manipulative practices within the egg production sector,” he charged.
Jayawardena called for swift Government intervention to address the situation and safeguard the interests of both bakery owners and consumers alike amid the ad-hoc price surge by the egg mafia.
Sri Lanka produces around 3,000 million per year but it has reduced to 2,000 eggs per year following the economic crisis and rising production costs.
