Egg prices soar in India as maize, soybean costs push up poultry expenses

Pune: Egg prices in India have surged to record highs, mainly due to a sharp rise in cost of poultry feed. On Friday, the ex-farm price of an egg was nearly ₹7, while its retail price was in the ₹8.5-9 range in many markets.

Poultry companies said the increase has been driven by higher prices of maize, soybean meal and imported feed ingredients following the West Asia conflict. They expect prices to start easing from the end of July as demand typically softens during the holy month of Shravan in northern India.

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Ex-farm egg prices in Hyderabad have risen by 15% month-on-month and nearly 40% year-on-year, according to data from the National Egg Coordination Committee (NECC). "Prices of almost all the commodities used in poultry feed have increased since the West Asia conflict began," said KG Anand, general manager of Venkateshwara Hatcheries.

"Prices of the essential amino acids used in feed have increased 3.5 times since March." Maize, which accounts for about 55% of poultry feed, has become more than 35% costlier since March, while the price of soybean meal, which makes up around 22% of the feed mix, has risen by more than 64%. Maize prices have increased due to strong demand from ethanol manufacturers, while erratic rainfall has raised concerns over the upcoming kharif and rabi crops.

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"Soybean prices have increased because India's production was about 20% lower," said Anand. The industry is also concerned that a deficient monsoon could reduce soybean output this year, putting further pressure on prices. Production of kharif oilseeds, including soybean, whose by-products are used in animal feed, is expected to be adversely affected. "Delayed and uneven monsoon progress, significantly lower acreage compared with last year, and the possibility of weaker rainfall during the critical August-September period, as forecast, may adversely impact oilseed yields," said BV Mehta, executive director of the Solvent Extractors' Association.

Meanwhile, intense summer heat that extended into June reduced broiler chicken production, pushing retail chicken prices to ₹250-260 per kg, according to industry data.