Now Reading: Egg prices may hit Rs 20-25 this winter on maize-driven feed costs
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Egg prices may hit Rs 20-25 this winter on maize-driven feed costs
Egg prices in India have risen 35-40% over the past year on farm gate, with retail rates now at Rs 8.50-9 per egg. Poultry industry estimates warn that branded and premium eggs…
Egg prices in India have risen 35-40% over the past year on farm gate, with retail rates now at Rs 8.50-9 per egg. Poultry industry estimates warn that branded and premium eggs could cost Rs 20-25 per egg this winter, though regular eggs may not see such hikes.
The main cause is surging maize prices, driven by a government policy requiring 20% ethanol blending in fuel. Maize, which forms 60-70% of poultry feed, has nearly doubled from Rs 14,000 per tonne three years ago to Rs 26,500 now. Around 37% of India's 43.4 million tonne maize output is used by distilleries for ethanol, leaving less for feed.
Higher soybean meal costs have added to poultry farmers' financial strain. Winter usually drives up egg demand, which could push prices higher further if feed costs stay elevated. Industry officials expect sustained price pressure unless maize diversion to ethanol eases.
Indian Opinion Analysis
Maize now competes with distilleries hungry for feedstock under the government's ethanol blending programme, which targets 20% blending by 2025. The same policy has already driven up maize prices by nearly 90% in three years, and diverted about 37% of domestic output. Poultry farmers, already squeezed by high soybean meal costs, cannot pass all the increase to consumers because bulk egg buyers like hotels switch to cheaper alternatives or imports. Whether the Rs 20-25 estimate materialises depends on how much maize the ethanol industry absorbs this crushing season, and whether winter demand meets an already tight supply. The real lead indicator is the monthly maize price at the NCDEX, which the NECC tracks alongside weekly egg rates.
Source: news.abplive.com
This brief was synthesised by AI from the source linked above.
