Egg prices in Mumbai have surged sharply to Rs 85–90 per dozen, a nearly 20% hike from early June, triggering concerns across the food supply chain. The spike is attributed to a combination of heat-induced production drops in North India and rain-triggered transport disruptions, leading to strained supplies and inflated costs in Maharashtra, especially in Mumbai.
Why the Surge?
According to traders in Navi Mumbai’s APMC market—one of the state’s primary egg distribution hubs—the extreme summer heat has stressed poultry birds, significantly reducing egg production. Simultaneously, unseasonal rainfall has worsened road conditions and caused delays in transportation, resulting in spoilage and delivery failures.
“Egg production in North India has fallen due to heat stress on birds. At the same time, rains have affected road transportation, leading to delays and spoilage, pushing prices to Rs 90 per dozen,” said Ramesh Vora, a prominent egg wholesaler in Vashi.
The Navi Mumbai wholesale egg market, a key supplier to restaurants, bakeries, caterers, and institutional buyers, is now struggling to meet demand due to erratic arrivals and insufficient stocks.
Who’s Affected the Most?
The price hike has rippled across multiple sectors:
Bakeries: Input costs have risen by 10–15%, especially for high-volume producers relying on eggs for baked goods and desserts.
Canteens & Mid-Scale Restaurants: With limited flexibility on pricing, some are reducing portion sizes or reworking recipes to cope with increased procurement rates.
QSRs & Institutional Caterers: Facing squeezed margins, many are reconsidering menu pricing.
FMCG Egg Product Manufacturers: Companies sourcing in bulk are now re-evaluating supply contracts and inventory policies in light of the ongoing volatility.
Logistics Breakdown & Cold Chain Challenges
Waterlogging in key poultry states like Bihar and Uttar Pradesh has added to distribution woes. Cold chain logistics providers have reported a surge in demand for refrigerated transport to mitigate spoilage during transit.
A senior official from the Poultry Federation of India (PFI) stated, “Birds are eating less and laying fewer eggs due to the stress. Weather-related disruptions, especially in northern states, have severely impacted supply lines.”
The industry expects production and supply to stabilize only after mid-July, provided weather conditions improve.
Looking Ahead: What to Expect
Price Volatility: Egg prices are expected to remain unstable for the next 2–3 weeks.
Limited Availability: Retailers and HORECA (Hotels, Restaurants, and Caterers) may witness reduced availability and further rate hikes for egg-based items.
Urgent Call for Intervention: Stakeholders are urging government agencies to streamline cold chain movement and highway access to ease transport bottlenecks.
Industry Response: Strategies Underway
To manage the crisis, food businesses are:
Adopting flexible pricing and menu adjustments.
Exploring alternate sourcing from local or southern suppliers.
Engaging in strategic inventory planning to mitigate short-term disruptions.
As egg remains a staple across cuisines and bakery segments, ensuring a steady supply amid climatic uncertainty has become critical. Stakeholders across the food ecosystem are bracing for a turbulent few weeks ahead.