THIMPHU: Rising prices of eggs and edible oil have emerged as one of the most pressing consumer concerns, with the latest Market Price Information data showing egg prices increasing by 11.59 per cent and edible oil by as much as 15.65 per cent since December last year.
The increases come even as prices of most other commodities have begun to stabilise.
The Minister of Agriculture and Livestock (MoAL) Younten Phuntsho, at the recent Meet-the-Press session, said the spike in egg prices is the result of deeper structural disruptions in the poultry sector, compounded by inflationary pressures and rising demand.
Lyonpo Younten Phuntsho said the shortage was not caused by a sudden collapse in production, but by “a highly sensitive and cyclical poultry production system reacting to earlier market disruptions”.
The minister said Bhutan’s poultry industry suffered a major imbalance after an unplanned over-supply of around 149,800 day-old chicks in 2023 triggered bumper egg production and flooded the market.
“The excess supply caused egg prices to fall below the cost of production, resulting in considerable financial losses for poultry farmers,” Lyonpo said.
As losses mounted, many poultry farmers either reduced production or temporarily exited the sector.
The ministry said only 64.5 per cent of the planned day-old chicks were lifted by farmers during the following production cycle.
The consequences are now being felt nationwide.
The reduced procurement of chicks translated into fewer laying birds this year, sharply reducing domestic egg supply at a time when demand continued to rise.
Demand from school feeding programmes and institutional buyers further intensified the shortage.
“Poultry production operates on a biological production cycle, where supply adjustments occur several months after farmers make decisions on chick adoption and flock management,” Lyonpo said.
“Any imbalance in production planning tends to have delayed but significant impacts on market supply and prices.”
The shortage, Lyonpo said, is expected to ease gradually from this month as newly supplied chicks and pullets begin entering their laying cycle.
According to the projections, domestic production is expected to meet the country’s monthly requirement of 10.99 million eggs by October this year.
Bhutan’s annual egg requirement stands at 122.31 million eggs.
“To ensure a more steady and consistent supply of eggs in the future, the ministry is prioritising a more rationalised and coordinated approach to the production and distribution of day-old chicks among poultry farmers,” Lyonpo said.
The minister said the intervention is aimed at aligning production with actual market demand and avoiding future market shocks and price volatility.
Until then, the government has begun controlled imports to prevent further price escalation.
The ministry has authorised regulated imports through the Bhutan Livestock Development Corporation Limited (BLDCL) and the Food Corporation of Bhutan Limited (FCBL).
FCBL has already imported 9,000 cartons of eggs for the general market, while BLDCL imported an initial consignment of 1,092 cartons, equivalent to 229,320 brown eggs, mainly for schools.
“While long-term measures are being put in place, it is the responsibility of the ministry to facilitate the affordable availability of eggs for consumers,” Lyonpo said.
The minister also warned that the increase in egg prices cannot be attributed to supply shortages alone.
“Broader economic factors, including inflationary pressures affecting feed costs, transportation, and other inputs, have also contributed to the rise in commodity prices,” Lyonpo said.
Edible oil prices, meanwhile, continue to rise largely because of Bhutan’s overwhelming dependence on imports.
The ministry said Bhutan imports about 97 per cent of its edible oil requirement from India, with import volumes increasing every year.
Although oilseed cultivation exists in the country, the minister said easy access to cheaper imported oil has discouraged investment and research into domestic oilseed production.
“Importing edible oil is more economical than producing it domestically in Bhutan,” Lyonpo said.
The ministry acknowledged that the country’s heavy dependence on imported essentials leaves consumers vulnerable to external price fluctuations and supply disruptions. - Kuensel/ANN
