India's poultry sector eyes domestic consumption over exports amid cost pressures

India's poultry industry is prioritising domestic consumption over exports, citing high production costs and a vast untapped local market, senior industry officials said on Monday.

Despite ranking second globally in egg production, India ranks 25th or 26th in egg exports, said Tarun Sridhar, former secretary in the Union Ministry of Animal Husbandry, Dairying and Poultry, at a curtain raiser for the 17th Poultry India Expo to be held November 25-28 in Hyderabad.

"Export is not an end in itself," the former secretary told reporters. "If my product is giving me more value in the domestic market, then why should I go for exports?," he questioned.


India ranks fourth or fifth globally in meat production. Still, it has the world's lowest per capita consumption at 3 kg annually, which is lower than that of Bangladesh and other developing nations.

Per capita chicken consumption in India stands at 6-7 kg per person per year, while egg consumption stood at 103 eggs annually, according to Naveen Pasuparthy, President of Karnataka Poultry Farmers & Breeders Association (KPFBA).

"The country has protein-deficient citizens," Pasuparthy said, noting that 71 per cent of Indians consume chicken and eggs. "We have 1.43 billion people. Why will I want to export?," he questioned.

Indian poultry producers face significant cost disadvantages compared to major exporters.

Corn costs Rs 23-25 per kg in India, compared to Rs 14 per kg in exporting countries, while soybean meal is 30 per cent more expensive domestically, industry officials said.

"Our cost of production is Rs 90. Their cost of production is Rs 25-30 less than ours," said Divya Kumar Gulati, chairman of the Compound Livestock Feed Manufacturers Association (CLFMA), noting that feed accounts for 80-85 per cent of production costs.

The cost gap stems partly from India's restrictions on genetically modified crops, which lower feed costs in competing nations.

"We will not be able to compete in international markets," Pasuparthy said.

Industry officials said export opportunities remain limited without significant infrastructure improvements. "Unless we have good processing facilities, good frozen and processed products, we will not be able to enter the export markets," Sridhar said, citing strict international hygiene standards.

Gulati suggested Export Processing Zones with duty-free imports as a potential solution, though viability remains uncertain.

The United States and other countries view India as a potential market for their poultry products due to competitive pricing advantages, officials said.