For more than two and a half decades, the wholesale price of egg is fixed by the NECC by including the commission for traders, termed as packing and handling (transportation) charges.

"The new pattern will come into effect on the New Year’s eve as NECC will fix the price that will be realised by farmers. Traders will have to fix their profit beyond the price fixed by the NECC," chairman of the NECC, Namakkal Zone, P. Selvaraj told The Hindu.

Mr Selvaraj said that the decision was taken after holding discussions with farmers and major egg traders in Namakkal on Monday (9 December).

Packing and transportation charges that were a mere five paise per egg increased to 25 paise in 2012 to make up diesel price hike and other expenses. "However, traders were deducting 60 paise per egg during the last few days. This forced farmers to undergo a tough time though wholesale egg price soared to a record high Rs. 4.03 per egg recently," Mr Selvaraj said.

"Farmers were getting only Rs. 3.48 per egg at that time. Contrarily table price of egg soared to Rs. 4.50 to Rs. 5," he said and justified that this scenario was the reason for dropping the price of egg by 28 paise on Sunday and Monday and fixing it at Rs. 3.75. He said that farmers are now getting Rs. 3.45 per egg as the deduction has come down to 30 paise.

Farmers and traders expressed the hope that retail price of egg will come down to Rs. 4 over the next few days. While the decision of the NECC was welcomed by poultry farmers, traders were yet to react to the decision.

State president of the Tamil Nadu Poultry Farmers Association R. Nallathambi said that the possibility of maintaining the decision is yet to be studied. "While we have formed a committee to help farmers stick to the price fixed by the NECC from New Year, demand for eggs and production of the perishable commodity will play a key role in helping us stick to our stand," he added.