Egg prices surge 35-40% as ethanol fuel policy strains poultry feed costs

Egg prices across India have surged between 35 and 40 percent over the past twelve months, driven by a sharp increase in production costs that have rippled through the poultry sector. Ex-farm prices have climbed to approximately Rs 7 per egg, while retail prices now range between Rs 8.50 and Rs 9 per egg in most markets, according to data compiled by the National Egg Co-ordination Committee.

The primary culprit behind the price escalation is a squeeze on feed costs, particularly corn, which forms a substantial portion of poultry feed. Ethanol fuel production policies have diverted significant quantities of corn from the animal feed supply chain, creating competition for available stocks and pushing prices upward. This supply diversion has cascading effects throughout the production cycle, forcing poultry farmers to absorb higher input costs.

The impact has been felt unevenly across India's egg-producing regions, with some areas experiencing steeper price increases than others. Retail consumers have borne the brunt of the increases, as farmers attempt to maintain viability amid compressed margins. Industry bodies continue to monitor the situation closely as the dual pressure of policy-driven corn diversion and seasonal demand patterns threatens further price volatility in coming months.

The situation underscores growing tensions between government biofuel mandates and food security concerns, as policy instruments designed to support renewable energy production inadvertently impact the affordability of essential protein sources for India's consumers.