Egg and chicken prices have eased from the highs recorded a month ago, primarily driven by a drop in demand during the auspicious month of Shravan. Despite this seasonal correction, industry stakeholders note that underlying supply-side pressures and soaring feed costs continue to squeeze poultry producers across the country.
According to Ricky Thaper, Joint Secretary of the Poultry Federation of India, wholesale ex-farm rates for broiler chickens currently stand at ₹90-95 per kg, while eggs are priced at ₹6-6.50 per piece, depending on the location. In Namakkal, India's poultry hub, the price of an egg dropped to ₹5.20 on Monday, compared to ₹5.90 at the beginning of the month and ₹6.80 in mid-July. Vangili Subramanian, President of the Tamil Nadu Poultry Farmers’ Cooperative Society, noted that the price correction was also influenced by a decline in export demand.
However, Suresh Chitturi, Chairman and Managing Director of Srinivasa Farms, pointed out that current egg prices remain above last year's levels. Despite elevated prices, farmers are reportedly losing about ₹0.50-0.60 on every egg produced. Chitturi explained that poultry feed costs have surged by 40 to 60 percent, sharply increasing the overall cost of production. Feed typically accounts for 65 to 70 percent of poultry production costs, with key ingredients like soybean meal and maize playing a vital role. Soybean meal prices rose by approximately 25 percent in a single month earlier this year, adding considerable pressure on layer farmers.
Divya Kumar Gulati, Chairman of CLFMA of India, stated that the elevated prices during a traditionally moderate demand period indicate that supply-side constraints are currently outweighing seasonal corrections. Industry estimates from Maharashtra indicate that the farm-level cost of producing an egg has increased to ₹5.20-5.50, up from ₹4-4.50 previously. Struggling with months of thin margins, farmers in Maharashtra have reportedly culled older hens prematurely and reduced chick placements, which is expected to constrain future egg supplies.
While broiler chicken prices experienced a temporary dip, they saw an increase due to Onam festivities, according to a Chennai-based industry source. Looking ahead, industry participants expect demand to fluctuate further during upcoming austere periods such as Purattasi in the Tamil lunar calendar, though stakeholders note that Shravan impacts a larger number of states across both northern and southern India.
The Indian poultry industry is valued at $30 billion and employs over 6 million people directly or indirectly. India ranks as the fourth-largest producer of poultry meat at 11 million tonnes and the second-largest producer of eggs, generating 149 billion eggs annually from 400 million layer birds. Despite this large-scale production, per capita consumption remains at 106 eggs per person annually and 7.4 kg of chicken per person a year. Industry leaders emphasize that ensuring sustainable, cost-effective domestic supplies of maize and soybean meal through government intervention will be critical to maintaining long-term market stability.
"The current situation in the poultry sector highlights the classic business challenge of balancing input cost inflation with end-consumer pricing. When raw material costs like feed increase by up to 60 percent, it fundamentally disrupts the supply chain, squeezing producers' margins even when retail prices appear elevated. For entrepreneurs and businesses in the agricultural and farming sectors, supply chain resilience, cost-effective raw material sourcing, and efficient working capital management are critical to surviving cyclical demand drops and margin pressures." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
