COPE raises concerns about practicality of pricing formula for eggs

The Committee on Public Enterprises (COPE), taking issue with the pricing formula introduced for eggs, has instructed the respective officials to revisit the move, on account of various practicality concerns.

A COPE meeting was convened on Wednesday (Jan. 25) under the chairmanship of MP Ranjith Bandara, a for four-pointer discussion as an extension of the committee meeting on January 19.

Reportedly, yesterday’s COPE meeting has focused on estimating the production cost reasonably for the purpose of setting a fair price for eggs in the market, safeguarding the domestic poultry industry, the egg shortage in the market and providing eggs to consumers at a fair price.

Given the directive at the previous COPE meeting, the secretaries to the Trade Ministry and the Agriculture Ministry have presented a price formula to determine the price of an egg having calculated the relevant cost of an egg accordingly.

Having discussed the formula presented and the matter of concern in depth, the COPE chairman has instructed the respective officials to revisit the pricing formula due to various practicality concerns in applying the formula presented.

The officials who attended the meeting vowed to revisit the pricing formula, taking into consideration all matters discussed at the COPE meeting.

When the focus of the meeting fell on safeguarding the domestic poultry industry, the COPE revealed that domestic producers representing the poultry industry have conveyed to the committee that if the price of an egg can be kept at Rs. 51 for a period of one and a half months until the poultry industry is stabilized, the price of an egg can be reduced further.

The COPE was also of the view that whilst considering protecting the poultry industry, the respective authorities should also look at the context from the perspective of the consumer and act fair by all parties.

It was disclosed at COPE that there exists a temporary dearth of approximately 3 million eggs per day. The officials present stated that there is no precipitated process in the poultry industry as a solution to this.  Therefore, officials stated that it has been agreed upon to import a limited number of eggs to the industry in consideration of the consumer.

Taking into consideration all factors presented before COPE, the Committee was of the view that all efforts must be made to find a solution to the matter at the discussion, which is fair to the consumer.

Accordingly, the COPE chairman has instructed the respective officials to inform the public of the measures taken and to reassure that all parties are collectively working towards finding a practical solution to the matters of concern.