India's Egg Price Hike: Corn Diversion and Maize Shortage Take Center Stage
Egg prices in India have skyrocketed by up to 40% over the past year, reaching Rs. 9 per egg from poultry farms and Rs. 8.50 to Rs. 9 at retail. The primary cause behind this surge is the increasing diversion of corn towards ethanol production under the government's blending policy.
The National Egg Coordination Committee (NECC) data indicates that about 37% of total corn yield is now allocated for distilleries, leaving less corn for sugar production and animal feed. A senior NECC representative shared with The Economic Times that approximately 17 million tons of corn are currently being utilized for ethanol production.
The maize shortage has also caused its prices to soar, from Rs. 14,000 per ton three years ago to nearly Rs. 26,500 per ton in the last five months, a rise of almost 20%. Maize constitutes the largest expense for poultry farmers, making up 65-70% of their total production costs.
An NECC official noted 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. The government's ethanol blending policy has increased the demand for biofuels mixed with gasoline, limiting the availability of sugarcane and corn for sugar production and animal feed.