Egg Price: India’s egg and poultry sector is currently experiencing a significant challenge. On one side, exports to Gulf nations have sharply decreased due to the ongoing West Asian crisis, while on the other side, a surge in domestic supply has exerted pressure on prices.
As per reports that India’s poultry and egg exports to the United Arab Emirates (UAE) dropped by nearly 25 percent in March 2026, and exports to Oman plummeted by over 90 percent. Overall, the country’s poultry exports saw a decline of nearly 20 percent in March.
The Gulf market is vital for India, representing about 82% of the nation’s total egg exports. Last year, India exported around $115 million worth of poultry products to the UAE alone, while Oman’s imports reached approximately $26.8 million. As tensions between Iran and the United States intensified in West Asia and shipping routes around the Strait of Hormuz faced disruptions, the Indian poultry industry began to feel the direct effects.
Namakkal in Tamil Nadu is the most severely impacted
The Namakkal poultry region in Tamil Nadu, which is India’s largest egg producer, is experiencing the most significant repercussions. A large volume of eggs is exported to Gulf countries, primarily through the V.O. Chidambaranar Port. However, traders are incurring substantial losses due to a shortage of shipping containers, rising freight costs, and delays in sea routes.
Since the Middle East crisis, ocean freight rates have surged dramatically. Furthermore, the prices of fuel, corn, and feed ingredients like soybeans have also increased, raising costs for poultry farmers. Industry experts note that with exports declining, supplies that once went overseas are now entering the domestic market. This influx has led to a greater availability of eggs locally, thereby putting downward pressure on prices.
Why have egg prices dropped in the domestic market?
The report states that Indian eggs were selling for about Rs 6.9 each in the export market, while the domestic market price was around Rs 5.3 per egg. As export orders declined, large quantities of stock were sold within the country. This is why egg prices are softening in many cities.
What could be the impact going forward?
Experts believe that if the West Asian crisis continues for a long time, pressure on India’s poultry business could increase. While domestic consumers are currently benefiting from cheap eggs, rising costs and declining exports have become a major cause of concern for poultry farmers. The industry hopes that if shipping routes normalize and demand in the Gulf countries strengthens again, exports may rebound.
