Rs 20-25 Per Egg This Winter? What Is Driving India's Rising Egg Prices

Rising poultry feed costs are pushing up egg prices, with industry estimates linking the pressure to costlier maize and soybean meal. Reports say a growing share of maize is being diverted for ethanol production, tightening supplies for poultry.

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What is driving the egg price surge?

Eggs may be getting noticeably costlier in the coming months, with rising poultry feed costs and the expected winter demand putting fresh pressure on prices.

Egg prices have already risen by around 35-40% over the past year. According to National Egg Co-ordination Committee data reported by The Economic Times, the ex-farm price is currently around Rs 7 per egg, while retail prices in many markets are between Rs 8.50 and Rs 9.

But could consumers really end up paying Rs 20-25 for a single egg during winter? That figure should be treated with caution. Reports suggest such prices are an expectation for certain premium or specialised egg brands rather than a confirmed nationwide price forecast for all eggs. Still, the broader trend is clear: the cost of producing eggs has risen sharply.

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Why is maize becoming a major problem for poultry farmers?

The biggest issue is maize, one of the most important ingredients used in poultry feed.

India's growing ethanol programme has increased demand for maize from distilleries. Industry estimates cited in recent reports suggest that roughly 37% of India's maize production is now being used for ethanol production.

This has created greater competition for the crop between the fuel and poultry sectors. Parliament data cited in recent reporting puts India's maize production at around 43.4 million tonnes, with nearly 17 million tonnes being used for ethanol.

For poultry farmers, this matters because maize is a major part of the feed bill. Industry estimates place maize at roughly 65-70% of poultry production costs. When maize becomes expensive, the impact is quickly felt across the poultry sector.

Maize prices have climbed to around Rs 26,500 per tonne, compared with roughly Rs 14,000 three years ago. They have also risen by nearly 20% over the past five months, according to recent industry reporting.

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Soybean meal is adding to the pressure

Maize is not the only problem.

Soybean meal, also known as soya DOC, is another important component of poultry feed because it provides protein. Its prices have also risen sharply.

Recent industry reports have linked the increase to tighter availability and higher input costs, adding further pressure to poultry producers. In July, poultry industry sources reported a 15% rise in overall feed costs compared with the previous year, driven by more expensive soybean meal and strong demand for maize from ethanol producers.

In simple terms, poultry farmers are facing a double blow: the energy component of feed is becoming more expensive because of higher maize prices, while protein costs are also rising.

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Why winter could make eggs even costlier

Winter usually brings stronger demand for eggs in India. If demand rises while poultry feed remains expensive, egg prices could stay firm or move higher.

That does not automatically mean every egg across India will sell for Rs 20-25. Retail prices vary significantly between states, cities, brands and types of eggs. Premium, speciality or branded eggs can also be priced very differently from regular eggs.

However, industry executives expect prices to remain under pressure as winter approaches, particularly if maize continues to be diverted towards ethanol and feed costs do not ease.

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Is ethanol the only reason behind higher egg prices?

No.

Ethanol demand is a major factor behind the pressure on maize supplies, but it is not the only one affecting egg prices. Weather conditions, crop output, poultry productivity, heat stress, disease or mortality, transport costs and the availability of other feed ingredients can also influence production costs.

Still, the growing competition for maize between ethanol producers and poultry farmers has become a key concern for the industry.

For consumers, the result is simple: a food item that was once among the cheapest sources of protein is becoming more expensive. Whether regular eggs actually reach Rs 20-25 this winter remains uncertain, but unless feed costs ease significantly, the pressure on prices is unlikely to disappear soon.