Coimbatore: Egg prices in Namakkal, South India’s largest egg production hub, have dropped sharply over the past 20 days, easing from a record high of ₹6.40 on January 1 to ₹5 on Tuesday.

The wholesale rate has fallen by ₹1.40 in less than three weeks, with industry sources attributing the decline to increased egg production and reduced demand ahead of the Thaipusam festival. Retail prices in local shops are currently around ₹6.50 per egg.

Namakkal recorded its highest-ever egg prices in December, driven by strong seasonal demand. The rate touched ₹6 in early December and rose steadily as bakeries placed large orders for Christmas and New Year celebrations, peaking at ₹6.40 — the highest in the region’s history — and remaining at that level until January 4.

Prices began easing from January 5, falling by 20 paise initially and continuing to decline daily. On January 18, the rate dropped by 30 paise in a single day to ₹5.30, before settling at ₹5 on Tuesday.

Despite the sharp correction, current prices remain higher than last year, when eggs sold for ₹4.80 on January 20, 2025. Traders expect further softening in the coming days as consumption typically dips during the Thaipusam festival period, which falls on February 1 this year, especially across Tamil Nadu.