India’s egg prices have been rising amid higher poultry feed costs, with increased demand for maize for ethanol production adding pressure to feed expenses. Industry officials said higher maize prices and rising poultry feed costs have contributed to the increase in egg prices.
According to data from the National Egg Coordination Committee (NECC), egg prices have increased by about 35-40% over the past year. At the farm level, an egg is currently priced at around ₹7, while retail prices have reached approximately ₹8.50-9.00 per egg.
The poultry industry said rising production costs are increasing pressure on farmers and businesses. If feed prices continue to rise, the additional cost could be passed on to consumers.
Maize is a major raw material used in poultry feed. At the same time, demand for maize for ethanol production has increased with the policy of blending ethanol with petrol in India. This has put pressure on maize availability.
According to the poultry industry, a significant share of total maize production is now being used by ethanol distilleries. The increased use of maize for ethanol is affecting poultry feed costs and could raise the prices of products such as eggs and chicken.
Maize is one of the most important feed ingredients for the poultry industry. According to the industry, maize can account for around 65-70% of total poultry production costs. Any significant change in maize prices therefore affects the costs incurred by poultry farmers.
Maize was priced at around ₹14,000 per tonne about three years ago, according to the information provided, and has since increased to around ₹26,500 per tonne. Its price has also recorded a notable increase over the past few months.
Higher maize prices increase the cost of producing poultry feed. Farmers cannot absorb the additional costs for an extended period, resulting in higher farm-level and retail egg prices.
The use of maize for ethanol production in India has increased rapidly in recent years. According to the available data, around 1 million tonnes of maize was used for ethanol production in 2022. By 2024, the quantity had risen to more than 6 million tonnes and is now claimed to have reached around 17 million tonnes.
Industry estimates indicate that if the current trend continues, demand for maize for ethanol production could reach around 25 million tonnes by 2030.
The poultry industry also uses a large share of maize produced in the country. As competition for maize between the ethanol and poultry sectors increases, pressure on maize prices is also rising.
Industry participants expect egg prices could face further pressure during the upcoming winter season. Egg consumption generally increases during winter, which could lead to higher demand and prices.
