Over the past one year egg prices in India have witnessed a steep increase and remain poised for further upward movement, particularly in the winter season when egg consumption is expected to rise. Rise attributed due to increase in maize prices, as maize is one of the important ingredients of poultry feed.
The National Egg Co-ordinating Committee (NECC) reported a hike of approximately 35 percent to 40 percent in egg prices in the last year. The farm price has reached up to nearly Rs 7 per egg and the retail price is currently Rs 8.50 to 9 per egg.
The poultry industry is anticipating higher and possibly higher prices this winter. Egg use is likely to increase in colder weather which may provide further pressure to egg prices.
So why are the prices of eggs increasing?
Main pressure is from increases in maize prices, a key ingredient in poultry feed. An increased cost of feed directly affects poultry farmers’ costs, which in turn affects egg prices.
What impact is ethanol production having on egg price?
More and more maize produced in India is being used for producing alcohol. This has taken pressure off maize supplies and prices, as they were used increasingly for poultry feed.
Maize prices may stay elevated during the coming months as the ethanol industry continues to battle with demands for maize from the poultry sector. Eggs may experience even more price hikes at retail stores if demand increases during the winter as predicted.