\u20b914 per egg<\/strong>. The sharp increase is raising concerns that consumers could face even higher prices as winter approaches, when egg consumption traditionally increases.<\/p>\n\n\n\nMaize Emerges as a Key Factor<\/strong><\/p>\n\n\n\nAt the centre of the price increase is maize, one of the most important ingredients used in poultry feed.<\/p>\n\n\n\n
According to industry estimates, maize accounts for roughly 50\u201355% of poultry feed<\/strong>, while maize and soybean together make up a significant portion of the cost of producing eggs and chicken.<\/p>\n\n\n\nAs the cost of poultry feed rises, producers face higher expenses, which can eventually be reflected in the price consumers pay for eggs. Feed is estimated to account for around 65\u201375% of egg production costs<\/strong>.<\/p>\n\n\n\nMore Maize Is Being Used for Ethanol<\/strong><\/p>\n\n\n\nThe growing demand for maize from India’s ethanol industry has added another source of pressure.<\/p>\n\n\n\n
Under the country’s Ethanol Blended Petrol programme, increasing quantities of maize are being diverted towards ethanol production. Government data cited in the report shows that maize used for ethanol production rose dramatically from 8.3 lakh tonnes to 125.75 lakh tonnes<\/strong> in just two years.<\/p>\n\n\n\nFor poultry producers, this means the same crop is increasingly being sought by two major industries: animal feed and ethanol manufacturing.<\/p>\n\n\n\n
India Moves From Maize Exporter to Importer<\/strong><\/p>\n\n\n\nIndia’s maize production has also increased substantially, reaching around 434 lakh tonnes in 2024\u201325<\/strong>, compared with 316 lakh tonnes in 2020\u201321.<\/p>\n\n\n\nHowever, rising production has not prevented supply pressure because demand from ethanol, poultry feed, starch and other industries has grown simultaneously.<\/p>\n\n\n\n
India’s maize exports dropped sharply from around 34.53 lakh tonnes in FY2022\u201323 to 5.56 lakh tonnes in FY2024\u201325<\/strong>. During the same period, imports increased significantly, with India effectively becoming a net maize importer in FY2024\u201325.<\/p>\n\n\n\nWinter Could Push Prices Higher<\/strong><\/p>\n\n\n\nThe timing of the price increase is particularly important.<\/p>\n\n\n\n
Egg consumption generally rises during the winter months as household, hotel, restaurant and institutional demand strengthens. If poultry feed remains expensive while demand increases, producers could face additional pressure.<\/p>\n\n\n\n
This creates the possibility of another increase in egg prices in the coming months, particularly if maize and soybean prices remain elevated.<\/p>\n\n\n\n
Ethanol Is Not the Only Reason<\/strong><\/p>\n\n\n\nAlthough the diversion of maize towards ethanol is an important factor, it is not the sole explanation for higher egg prices.<\/p>\n\n\n\n
Maize prices are also affected by production levels, weather conditions, storage, market arrivals, imports and exports. Soybean prices can influence feed costs independently, while egg prices are also affected by seasonal demand, flock sizes, disease outbreaks and regional supply conditions.<\/p>\n\n\n\n
The government has maintained that maize availability remains sufficient for ethanol production, poultry and other uses. The issue is therefore less about an absolute shortage and more about increasing competition for available supplies.<\/p>\n\n\n\n
A Wider Food-Fuel Debate<\/strong><\/p>\n\n\n\nThe egg-price increase highlights a broader challenge created when agricultural commodities have competing uses.<\/p>\n\n\n\n
Maize is increasingly important not only as food and animal feed but also as a raw material for ethanol. As India’s ethanol programme expands, the country needs to increase maize production sufficiently to meet these different demands without creating excessive pressure on food and feed prices.<\/p>\n\n\n\n
For consumers, the impact is already visible in the cost of eggs and other poultry products.<\/p>\n\n\n\n
What Happens Next?<\/strong><\/p>\n\n\n\nIndia’s record egg production of 149.11 billion eggs in 2024\u201325<\/strong> indicates that the country continues to expand poultry output. However, production growth has slowed compared with earlier years, making feed costs even more important for the industry’s profitability.<\/p>\n\n\n\nIf maize supplies increase fast enough to satisfy ethanol and poultry demand, some pressure could ease. But if demand continues to outpace supply, higher feed costs could keep egg prices elevated.<\/p>\n\n\n\n
With winter demand approaching, consumers could therefore see further volatility in egg prices.<\/p>\n\n\n\n
Summary<\/strong><\/p>\n\n\n\nEgg prices in India have risen around 40% over the past year, with farm-gate rates reaching about \u20b97 and some retail prices nearly \u20b914 per egg. Rising maize demand from ethanol production is increasing competition for a key poultry-feed ingredient. With winter demand expected to rise, industry experts warn that egg prices could face further pressure, although ethanol is not the only factor behind the increase.<\/p>\n\n\n\n
Image Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Egg Prices Hit Record Levels Egg prices across India have climbed sharply, rising by around 40% over the past year, with the increase putting pressure on one of the country’s most affordable sources of protein. Farm-gate prices have reached around \u20b97 per egg, while retail prices on some online delivery platforms have touched nearly \u20b914 […]<\/p>\n","protected":false},"author":30,"featured_media":1313400,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[10489,5994],"class_list":["post-1313393","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-eggs","tag-ethanol"],"acf":[],"yoast_head":"\n
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