Eggs have become much more expensive across India during the past year. It may get even costlier this winter.
The problem starts with maize, also commonly called corn. Maize is a major ingredient in poultry feed. However, growing quantities are now being used for ethanol production. This diversion has reduced supplies available for poultry farmers.
have increased by around 35% to 40% over the past year. This estimate comes from the National Egg Co-ordination Committee (NECC). An egg now costs around ₹7 at the farm level. At shops, consumers pay between ₹8.50 and ₹9 for each egg.
Prices may remain high during the coming months. Poultry executives believe they may rise further as winter approaches. Indians usually consume more eggs during colder weather. This seasonal demand could put additional pressure on available supplies.
A senior NECC official explained the maize shortage to The Economic Times. Around 37% of India’s maize production now reaches ethanol distilleries. The official linked this growing diversion with higher egg production costs.
“Roughly 37% of the total maize production is now going to ethanol distilleries. In the past one year, egg prices have gone up by nearly 40% and are likely to rise further,” the NECC official told ET.
India’s ethanol programme aims to reduce dependence on traditional petrol. The government requires oil companies to mix petrol with biofuel. This blended fuel is then sold through regular fuel pumps.
The ethanol share in blended petrol has now reached 20%. Reaching this target requires large amounts of raw material. Sugarcane and maize are both widely used for producing .
Greater sugarcane diversion has reduced the supply available for making sugar. Similarly, maize diversion has reduced poultry feed supplies. This competition is making an important farm commodity much more expensive.
Maize cost around ₹14,000 per tonne three years ago. It now costs nearly ₹26,500 per tonne. Prices have increased almost 20% during the past five months alone, according to ET.
Such increases create serious problems for poultry farmers. Maize is their single biggest production expense. It accounts for around 65% to 70% of total poultry production costs.
A sustained increase in maize prices can quickly damage farmers’ margins. Farmers eventually pass some more costs to egg and chicken buyers.
Parliamentary data show that India produces around 43.4 million tonnes of maize. Nearly 17 million tonnes are currently used for . This leaves less maize for poultry feed and other industries.
Ethanol’s demand for maize has grown remarkably quickly. Maize-based ethanol production stood near 1 million tonnes during 2022. It crossed 6 million tonnes during 2024. Current production has reached around 17 million tonnes.
Experts expect this figure to keep rising. Maize use for ethanol could reach 25 million tonnes by 2030. That growth could intensify competition for domestic maize.
The poultry industry already consumes roughly 60% of India’s maize. Ethanol companies now want more of the same crop. Both industries are therefore competing directly for limited maize supplies.
Ethanol not only reason
However, ethanol is not the only reason for the high cost of poultry products. A senior industry executive highlighted several other factors to The Economic Times.
“Factors such as heat stress, mortality levels, weather disruptions and the availability and cost of imported feed ingredients can also significantly influence production costs and market prices,” he told ET.