Small-scale egg producers in Sri Lanka are facing a crisis as rising production costs force them to leave the industry.
The cost of producing an egg for small producers is Rs. 26-28, while large-scale producers only spend Rs. 18-20 per egg.
This cost difference is attributed to the tax system, where small producers pay VAT on animal feed, while large producers, who make their own feed, do not pay taxes on the raw ingredients.
As a result, small producers are incurring losses due to falling egg prices and are selling their hens for meat. This has led to a rapid decline in egg production, and market analysts warn that egg prices could rise to Rs. 60 during the upcoming festive season.