Chairman of the Sri Lanka Livestock Producers Association Ajith Gunasekara has warned that egg prices could increase to between Rs. 45 and Rs. 47 by December, driven by rising production costs and growing demand. Speaking, he said the gradual increase in egg prices was mainly driven by a nearly 20% cent rise in the cost of raw materials used in egg production over the past few months. He added that the current cost of producing an egg is between Rs. 32 and Rs. 34, while the farm-gate price stood at Rs. 35 and the market price was at Rs. 40 yesterday (Nov. 09). Gunasekara warned of further price increases as some poultry farmers were considering selling their laying hens for meat to recover losses caused by increasing production costs. He also pointed out that rising egg demand from tourist hotels ahead of December could also create a supply shortage for the local market. Noting that taxes amounting to Rs. 9 - Rs. 11 were imposed on each egg and around 25% of the prices of chicken and eggs was collected as tax, Gunasekara urged the government to reduce taxes on food items such as eggs and chicken, which are among the most accessible sources of protein for the public.
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