News Summary
- The Nepal Layers Poultry Farmers Association reduced the farm price of eggs starting from 29th Falgun, but retail prices have increased.
- Retailers claim wholesalers have not lowered their prices and do not want to incur losses.
- Madan Pokharel, secretary of the association, stated that due to multiple layers of intermediaries, consumers are being exploited while farmers do not receive their cost price.
March 16, Kathmandu — Whether for breakfast or an afternoon snack, eggs are almost always present in Nepalese kitchens. But how much do consumers actually pay to purchase eggs?
Consumers end up paying up to NPR 25 per egg. Traders have normalized egg prices in the range of NPR 25 to 30 per egg.
Effective from 29th Falgun, the Nepal Layers Poultry Farmers Association has reduced the farm price of eggs. However, despite this reduction, consumers have not experienced relief in retail markets because retailers have increased prices.
Experts note that it is illegal for any organization to fix prices through collusion. Yet, the association maintains it sets a support price so farmers can cover their costs.
According to the association’s data, compared to 11th Falgun, as of 29th Falgun there has been a price reduction of up to NPR 40 per crate.
New and Previous Farm Prices of Eggs
Starting 11th Falgun, the farm price of the largest (XL) eggs was set at NPR 495 per crate.
Similarly, large eggs were priced at NPR 475 per crate and medium eggs at NPR 445 per crate.
Currently, the official prices have been adjusted to NPR 455 per crate for XL eggs, NPR 440 for large eggs, and NPR 410 for medium eggs.
The association cites that although prices rose before the election due to high demand, they later decreased because consumption dropped.
Even after adding NPR 130 per crate for transport and packaging costs, consumers should be able to buy eggs at much cheaper rates. Instead, they are paying prices higher than before the reduction.
Retailers’ Claims and Justifications
When questioned about why retail egg prices haven’t decreased, retailers commonly respond, “Wholesalers have not reduced prices, so how can we afford to sell at a loss?”
A retailer from New Baneshwor claimed that egg prices have actually risen for three to four days after the association’s price cut, reporting that medium eggs now cost NPR 470 per crate on the market.
The association’s price for medium eggs is NPR 410 per crate. Even if retailers accepted only NPR 20 profit, eggs would have cost NPR 430. However, retailers claim they are earning over NPR 50 in profit. Although the large eggs’ price decreased to NPR 440 per crate, the retailer said they are selling them for up to NPR 510.
When asked about the Egg Business Federation’s assertion of price reductions, the retailer explained that suppliers themselves are raising prices, forcing them to raise retail prices.
“Suppliers are bringing eggs saying the rates are rising,” said the retailer.
The retailer could not specify exactly how much suppliers have increased prices but noted that egg market rates are very unstable.
“Egg prices fluctuate constantly,” he said, “Despite rumors about price drops, no such decrease has taken place.”
This situation reveals the extent of the cartel and intermediary dominance in the market. Eggs produced by farmers reach consumers’ kitchens after intermediaries artificially increasing prices for unfair profits.
Association Says Multi-layer Intermediaries Cause Consumer Exploitation
While the association announced the price reduction, it admits the implementation in the market has been lacking. Secretary Madan Pokharel stated that multiple intermediary layers lead to consumer exploitation and farmers not receiving their cost price.
“Farmers do not receive fair prices, and consumers are being cheated,” he said. “Though the association officially publishes reduced and increased prices, enforcement in the market is inadequate.”
Regarding wholesalers and retailers claiming the association advised them to sell at higher prices, Pokharel rejected this, saying, “That is just their excuse to justify their profits. We never instructed them to raise prices.”
Pokharel explained that eggs pass through four to five intermediaries from producer to retail, each adding a margin, leading to excessive final prices for consumers.
For example, he said, “As a farmer selling to suppliers in Chitwan, transport to Kathmandu, Biratnagar or Pokhara adds NPR 130 per crate, plus suppliers take NPR 20-30 as profit, which equates to NPR 4 to 5 per egg margin.”
After reaching the depot from suppliers, eggs continue through sub-depots before arriving at grocery stores, passing through multiple steps where margins are added.
With margins at each step, the ultimate consumer price becomes artificially inflated.
“Given the cost and reduced farm prices, consumers should pay less than NPR 22 per egg, but the intermediaries cause higher prices,” Pokharel said.
He acknowledged that while the association tries to set prices based on market reality, it cannot fully ensure market adherence.
“We cannot monitor every retailer’s pricing, but we remain committed to protecting farmers and preventing consumer exploitation,” he added.
He called on government bodies responsible for monitoring and regulation—such as the Department of Commerce, Supplies and Consumer Protection—to take action and penalize traders violating regulations.
