Egg and chicken prices have risen sharply across India this year, pushing up the cost of two of the country’s most accessible sources of protein. While seasonal supply pressures and weather-related disruptions have contributed to the trend, industry data points to a major driver further up the value chain: the rising cost of poultry feed.
Poultry feed accounts for nearly two-thirds of the cost of producing eggs and broiler chicken. Because the sector operates on tight margins, farmers find it difficult to absorb prolonged increases in agricultural commodity prices. Maize and soybean meal form the core of poultry feed, with maize providing energy and soybean meal serving as the primary protein source. According to industry estimates, maize makes up roughly 55 to 60 percent of poultry feed.
This year, cost pressures intensified significantly. Poultry feed prices rose by approximately 15 percent, moving to ₹4,400 per quintal from about ₹3,600 a year earlier. Simultaneously, soybean meal prices remained high at around ₹62,000 to ₹65,000 per tonne, with industry estimates pointing to a shortage of about 1.5 million tonnes prior to the arrival of the new crop.
Demand shifts have also added pressure to the supply chain. Growing consumption of maize by ethanol manufacturers has increased competition for available supplies, directly transmitting grain market inflation to feed manufacturers and, subsequently, to poultry producers.
In addition to feed inflation, prolonged heatwaves and erratic rainfall have impacted poultry productivity. High temperatures cause stress in birds, which reduces feed intake, growth, and egg production. Irregular rainfall similarly creates uncertainty around the availability and pricing of maize and soybean crops.
The impact of these combined factors became clearly visible in market pricing. In July, ex-farm egg prices in Hyderabad rose by 15 percent month-on-month and nearly 40 percent year-on-year, with retail prices reaching approximately ₹8.5 to ₹9 per egg. Intense summer heat also affected broiler production, driving up chicken prices.
Data from the Department of Animal Husbandry and Dairying shows that India produced 149.11 billion eggs in 2024-25, with commercial poultry accounting for 84.49 percent of total production. Given the sheer scale of the industry, modest changes in production costs quickly translate into noticeable shifts across the broader food economy.
Industry responses have included output adjustments. In June, the All India Poultry Breeders’ Association indicated that a large section of the industry planned to reduce production by 25 percent in response to soaring soybean meal costs and weak margins.
Until feed prices stabilize and crop supply concerns ease, poultry prices are expected to remain sensitive to agricultural market trends and weather conditions, highlighting the close link between affordable protein supply and the economics of maize and soybean.
"The recent surge in poultry and egg prices clearly demonstrates how upstream agricultural commodity dynamics directly impact retail food inflation in India. When essential feed ingredients like maize and soybean meal face supply shortages and cross-industry demand competition, tight-margin sectors like poultry feel an immediate squeeze. For agribusiness entrepreneurs and supply chain operators, this scenario underscores the critical need for better risk management, input cost hedging, and resilient sourcing strategies to navigate commodity price volatility." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
