Egg Price Hike: Again the price of Egg increased. Yes you’ve heard it right. The government might be downplaying the impact of ethanol on rising sugar prices, yet this belief is deeply rooted in the public’s mind. At the same time, the repercussions of ethanol are starting to influence egg prices, and chickens are expected to be affected soon. Corn, which is the primary ingredient in poultry feed, is increasingly being diverted for ethanol production. This shift has led to a rise in feed costs, which in turn is affecting egg prices.
Data from the National Egg Coordination Committee (NECC) indicates that egg prices have surged by about 35 to 40 percent over the last year. Currently, eggs are priced at around Rs 7 from poultry farms, while retail prices range from Rs 8.50 to Rs 9.00. Officials in the poultry industry anticipate further price increases as winter approaches, a season known for higher egg demand.
A senior NECC representative shared with The Economic Times that approximately 37% of the total corn yield is now allocated to distilleries for ethanol production. Egg prices have already climbed by about 40% in the past year and may continue to rise shortly.
Under the government’s ethanol blending policy, oil companies must sell biofuels mixed with gasoline. With the ethanol content in gasoline reaching 20 percent, the demand for both sugarcane and corn for ethanol has surged, limiting their availability for sugar production and animal feed.
The maize shortage has also caused its prices to soar. Three years ago, maize was priced at Rs 14,000 per ton, but it has now skyrocketed to nearly ₹26,500 per ton. In just the last five months, its price has risen by almost 20 percent. An NECC official noted that maize constitutes the largest expense for poultry farmers, making up 65-70 percent of their total production costs. As a result, the ongoing increase in maize prices is posing significant challenges for the industry.
What is the production level in India?
According to government statistics, India’s total corn production stands at around 43.4 million tons, with approximately 17 million tons currently being utilized for ethanol production. This has significantly reduced the supply of corn for poultry feed and other needs. A senior industry official said that corn and soybean prices directly impact poultry feed costs, and if these costs continue to rise, they will eventually be reflected in egg and chicken production prices.
However, he also acknowledged that egg prices are not rising solely due to ethanol but that heat stress, chicken mortality, weather changes, and availability and prices of imported feed also play a major role.
Ethanol production from corn increased rapidly
Ethanol production from corn has grown rapidly. It was around 1 million tons in 2022, 6 million tons in 2024, and now stands at 17 million tons. Experts believe it could reach 25 million tons by 2030. The poultry industry consumes approximately 60% of the country’s corn, putting it in direct competition with the ethanol industry.
India forced to import maize
This growing demand has also changed India’s position in the global maize market. India previously exported maize to countries like Bangladesh and Vietnam, but now domestic demand has outpaced exportable reserves, forcing India to import maize. India’s maize imports reached a historic high of 1 million tons in FY2025, and imports are still hovering around half a million tons. The industry fears that if domestic production does not increase rapidly, these imports could increase further.