Feed-cost surge pushes up egg and chicken prices in India
Higher maize and soybean-meal costs are raising poultry production expenses, prompting planned output cuts and retail price pass-throughs. Hyderabad egg prices reached roughly ₹8.5–₹9 each after sharp monthly and annual increases.
What happened
India poultry sector · Higher maize and soybean-meal costs, ethanol demand, weather disruptions and tighter supplies are raising Indian poultry production
Key facts
- Poultry feed prices rose about 15% to ₹4,400 per quintal from roughly ₹3,600 a year earlier
- Maize represents roughly 55-60% of poultry feed
- Soybean meal prices were around ₹62,000-₹65,000 per tonne
- Estimated soybean meal shortage: 1.5 million tonnes
- Industry planned a 25% production reduction in June
- Hyderabad ex-farm egg prices rose 15% month-on-month and nearly 40% year-on-year in July
- Retail eggs reached about ₹8.5-₹9 per egg
- India produced 149.11 billion eggs in 2024-25
- Commercial poultry accounted for 84.49% of egg production
Why this matters
Feed-cost volatility strengthens the strategic case for vertically integrated poultry platforms, long-term maize and soybean-meal sourcing partnerships, and acquisitions that improve input security or production efficiency.
What to watch
- Maize and soybean-meal wholesale prices, import-policy changes, monsoon progress and crop-condition updates.
- Weekly egg and broiler benchmark prices across Hyderabad and other major consuming markets.
- Poultry placement, hatchery and culling data indicating whether planned production cuts deepen supply tightness.
- Retail egg and chicken unit volumes versus value growth, especially at value-format grocers and quick-service restaurants.
- Government action on feed imports, stock limits, transport costs or consumer-food inflation.
- Pulse, dairy and soy-product sales acceleration as evidence of protein substitution.
- Increase procurement cover and diversify egg, broiler, maize and soybean-meal suppliers, including regional sourcing to reduce spot-market exposure.
- Use targeted rather than broad price increases: prioritize premium eggs, processed chicken and foodservice menus while protecting entry-price packs.
- Expand promotions, visibility and private-label assortment in substitute proteins such as pulses, paneer, soy products and value dairy.
- Review fresh-food shrink, demand forecasts and inventory turns as higher ticket prices may slow unit velocity.
- Prepare menu engineering for restaurants and ready-to-eat counters, including smaller chicken portions, mixed-protein offerings and selective surcharge pass-throughs.