New Delhi: The price of organic eggs in the United States could swell up in the coming days. The spike in prices of eggs is a likely result of the recent US trade dispute with India.
Yes, you read that right. The reason behind this is that South Asian countries such as India supply 40% of organic Soya meal requirements of the United States. The Soya meal is used to feed chickens which lays organic eggs for supply in the US.
According to several reports, the US is investigating claims of India and fairly dumping and subsidizing Soya products, which in turn could harm American companies. There are also chances of an increase in tariffs for India.
All of this is caring merchandisers, which in turn have started hooding Soya meals as a response. This is also contributing to increasing in prices and tight supplies. (Also Read: Big boost for telecom players! Cabinet approves 4-year moratorium on AGR dues, 100% FDI)
Estimates suggest that the “average industry cost of producing a dozen organic eggs went up from 15 cents to 20 cents because of the rise in the price of feed alone,” Bloomberg reported.
Cost of Organic soybeans in the US reached $29.92 a bushel on Friday, which is 40% off from a year ago. Trade tensions, pandemic related shipping disruptions are also contributing to this price spike. (Also Read: Telecom, IT shares lift Sensex, Nifty to all-time highs)
According to many estimates, the average industry cost of producing a dozen organic eggs went up from 15 cents to 20 cents because of the rise in the price of feed alone.