The poultry industry is now setting its sights on the neighbouring Sri Lanka, after benefiting from high egg prices in the domestic market, according to Hindu Business Line.

P. Selvaraj, Chairman, National Egg Coordination Committee (Namakkal Zone), told the newspaper: "We started test-supplying eggs and day-old chicks in mid-December. So far we have exported four containers (1.8 million) to Sri Lanka."

"Despite the announcement of lifting of ban on Indian poultry products by Oman, Bhutan, Saudi Arabia and Qatar, there is not much happening on the export front. And hence the trade is exploring newer territories," said sources.

Egg exports have been affected badly in the last two years mainly due to incidence of bird flu in the eastern parts of the country. In June, the Centre declared the country free of bird flu.

Buyers are usually expected to wait for six months after such declaration to begin purchases but it has been delayed.

According to the National Egg Coordination Committee (NECC), exports during in the April-August period of the current fiscal year have dropped to an average 4.3 crore a month from 8.74 crore a month last fiscal. Currently, exports to Afghanistan, Kazakhstan and Turkmenistan are nearly 150 containers (1 container = 475,000 eggs) a month.

Earlier this month, Sri Lanka decided to import up to 2,000 tonnes of chicken from India to meet shortages ahead of the Christmas holiday season. Sri Lanka produces about 9,800 tonnes a month but there is a demand-supply gap of one million day-old chicks and the Indian trade hopes to cash in on this mismatch.

Hindu Business Line reports that, on the domestic front, NECC has decided to hike egg prices to 2.86 rupees (INR) a piece. This is 20 paise more than last week's level. With the torrential rains lashing the North, egg prices are set to rise further in the coming days. Reduction in production too has sent the egg prices moving up across the country.

But Palladam-based Broiler Co-ordination Committee, owing to over production and a glut-like situation, has slashed the rates of cull birds by INR8 per kilo to INR47. NECC's layer rates too have been slashed this week to INR32 (INR33 per kilo).