Egg, the most cost effective supply of protein, is burning a gap within the pocket. Egg costs have surged by around 40% within a year, with farm-gate costs touching about Rs 7 per egg and retail costs reaching practically Rs 14 on on-line supply platforms. With demand for eggs usually rising throughout winter in India, poultry farmers and business specialists are warning that costs may come below additional strain within the months forward. Consultants recommend there’s an ethanol angle to this surge in egg and poultry costs.
Maize is on the centre of consideration within the newest egg value shock. It is because maize is likely one of the most essential substances in poultry feed. In recent times, India has been diverting maize for its Ethanol Blended Petrol (EBP) programme. So, India-grown maize has moved away from turning into poultry feed to powering E20 petrol, and it is likely one of the key the reason why egg costs are hovering.
Health influencer Chirag Barjatya additionally highlighted the sharp rise within the value of eggs, calling consideration to the rising price of one in every of India’s most cost-effective sources of protein. “Eggs at the moment are costing Rs 9–10 per piece. Virtually 40% hike,” Barjatya posted on X, pointing to how the rise is making even fundamental protein sources costlier for shoppers.
He additionally highlighted the rising costs of different protein-rich meals, saying whey protein now prices round Rs 4,200 per kg, whereas high-protein paneer is priced at about Rs 180. Barjatya argued that sustaining a high-protein weight loss plan is turning into more and more costly, significantly for vegetarians, with the price of a 100-gram-protein day by day weight loss plan probably reaching Rs 10,000–12,000 a month.
In line with Compound Livestock Feed Producers Affiliation (CLFMA) of India Chairman Divya Kumar Gulati, corn accounts for roughly 50–55% of poultry feed, with soybeans making up a lot of the remaining main element. The costs of those two substances subsequently have a direct bearing on the price of producing eggs and rooster.
“Poultry’s 50–55% of feed consists of corn [maize]. The remaining comes from soyabean. These two decide the value of the feed of the poultry. This later decides the value of eggs and rooster,” Gulati instructed Financial Occasions (ET) Now tv community on August 25.
The strain on maize has intensified as India has quickly expanded its EBP programme. Growing portions of maize that might historically have been obtainable to feed producers at the moment are being channelled in direction of ethanol distilleries.
Knowledge from the Nationwide Egg Coordination Committee (NECC) means that the value of eggs has shot up by 40% within the final one yr.
Samajwadi Celebration criticised the BJP-led Centre and alleged that the rise within the value of eggs is because of the diversion of maize to ethanol production.
“Because of the BJP’s unsuitable ethanol coverage, even the poor’s low-cost protein supply, eggs, are about to be faraway from the poor’s plate. On one aspect, eggs, sugar, every part is getting costly, and the BJP’s coverage of low-cost petrol is failing,” the social gathering posted on X on Thursday.
HOW MUCH MAIZE IS BEING DIVERTED TO ETHANOL DISTILLERIES?
The numbers present how dramatically maize has shifted in direction of ethanol distilleries.
In line with a Lok Sabha reply by Minister of State for Client Affairs, Meals and Public Distribution Nimuben Jayantibhai Bambhaniya in 2025, 125.75 lakh metric tonnes of maize have been utilised for ethanol manufacturing throughout Ethanol Provide 12 months (ESY) 2024–25.
Maize-based distilleries had been allotted 477.8 crore litres of ethanol throughout that offer yr.
The rise has been speedy. In simply two years, maize use for ethanol jumped from 8.3 lakh tonnes to 125.75 lakh tonnes, a rise of greater than 15 occasions.
An allocation of about 125.78 lakh tonnes has additionally been cited for ESY 2025–26, though precise utilisation can differ from allocation.
This surge has additionally modified the composition of India’s ethanol business. Maize has now emerged as the one largest feedstock for ethanol manufacturing, overtaking different particular person feedstocks as grain-based ethanol manufacturing expands below the EBP programme.
That represents a basic change within the maize market.
HOW INDIA TURNED FROM MAIZE EXPORTER TO A NET IMPORTER
India’s maize manufacturing has elevated significantly, however so has competing demand. The federal government knowledge put the manufacturing of Maize at 316 lakh tonnes in 2020–21 and 434 lakh tonnes in 2024–25, an increase of practically 37% over 4 years.
But the rise in manufacturing has not prevented strain on costs as a result of ethanol, poultry feed, starch and different industries are all competing for the crop.
And the commerce knowledge on maize provide one other indication of the tightening home steadiness.
India exported round 34.53 lakh tonnes of maize within the monetary yr (FY) 2022–23. Exports fell to 14.42 lakh tonnes in 2023–24, a decline of about 58%. Then the exports fell to only 5.56 lakh tonnes in 2024–25, one other droop of round 61%.
On the identical time, imports elevated from round 1.37 lakh tonnes in 2023–24 to 9.70 lakh tonnes in 2024–25, a bounce of greater than 600%.
It means India moved from being a serious maize exporter to a web importer in FY2024–25.
WHY RISING MAIZE PRICES IS REFLECTING IN COST OF EGGS
That is vital for poultry as a result of maize is just not merely one other feed ingredient. It’s a main supply of vitality in poultry diets. When its value rises, feed producers have little alternative however to move a minimum of a part of the extra price down the chain.
The market costs mirror that strain. Nationwide common wholesale maize costs have been broadly round Rs 2,150–2,370 per quintal throughout 2024, whereas some 2025 costs crossed Rs 2,400 per quintal.
In 2026, costs initially moderated, however latest mandi costs have once more been reported at round Rs 2,300–2,645 per quintal, with appreciable variation throughout markets.
For the poultry sector, the issue is subsequently not merely that maize is dear. It’s that the identical crop is more and more being pulled into a brand new and quickly increasing market.
Extra maize going into ethanol means much less maize competing for poultry feed, except manufacturing rises quick sufficient to fulfill each calls for. And when that steadiness tightens, the affect can journey from the maize mandi to the feed mill and ultimately to the value of an egg.
WHY EGG PRICES IN INDIA ARE LIKELY TO RISE FURTHER
Poultry feed represents a serious share of the price of producing eggs. Business estimates put feed at round 65–70% of egg manufacturing prices, making poultry extraordinarily delicate to adjustments in maize and soybean costs.
For this reason the latest rise in egg costs is being linked so carefully to the ethanol programme.
India’s egg manufacturing can be rising, however the tempo of development has slowed lately. After rising by round 6–7% yearly between 2020–21 and 2022–23, development moderated to three.18% in 2023–24 and 4.44% in 2024–25, at the same time as complete manufacturing reached a report 149.11 billion eggs.
The costs of the most cost effective supply of protein egg have risen by 40% over the previous yr as rising maize diversion in direction of ethanol pushed up poultry feed prices. In line with the Financial Occasions report, specialists anticipate additional strain as winter demand picks up.
Timing is one other essential dimension to the story.
Egg consumption usually rises in the course of the winter months. Demand from households, lodges, eating places and different institutional consumers tends to strengthen as temperatures fall. If feed prices stay elevated whereas demand will increase, poultry farmers may face one other spherical of value strain.
That’s the reason the present 40% rise might not essentially characterize the top of the story.
IS ETHANOL THE ONLY REASON FOR THE EGG PRICE SURGE?
Ethanol diversion is clearly an essential supply of further maize demand, however it could be too simplistic to say that each rupee added to the value of an egg is brought on by ethanol.
Maize costs are additionally influenced by manufacturing, climate, arrivals, storage, exports and imports. Poultry feed incorporates soybean meal as nicely, whose value can independently have an effect on manufacturing prices. Egg costs themselves are affected by seasonal demand, poultry flock sizes, illness outbreaks and regional provide situations.
The federal government’s personal place is that maize availability stays ample for ethanol, poultry and different makes use of. The Centre has additionally pointed to rising maize manufacturing as proof that provides are increasing.
So ethanol alone inflicting the egg-price rise wouldn’t be the stronger argument, however that the speedy diversion of maize into ethanol has added as a serious supply of demand to an already aggressive market.
This isn’t the one occasion of diversion of a commodity for ethanol manufacturing being blamed for a surge in meals costs.
The diversion of cane for ethanol has been blamed as an element for the surge in sugar prices to a record high last week.
Within the case of rising costs of eggs, the maize hyperlink is obvious as a result of it’s a core poultry-feed ingredient, and ethanol is now competing straight with poultry for that crop.
The nation is producing extra maize than it did 5 years in the past. However additionally it is discovering extra makes use of for each tonne produced. That is the central pressure behind the egg-price surge.
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