India's Ethanol Boom Sparks Egg Price Surge
The rising demand for ethanol in India has led to a sharp increase in corn prices, which is having a ripple effect on the poultry industry. As a result, egg costs are expected to soar further.
Rising sugar prices and growing demand for ethanol have combined to push up poultry feed costs, impacting egg prices. Egg prices have risen by around 35-40 percent over the past year, and further increases are predicted as winter demand picks up.
The government's ethanol blending policy is driving up demand for corn alongside sugarcane for ethanol production. According to industry data, about 37 percent of India's total corn production is now used in ethanol distilleries. The country's total corn production is estimated at around 43.4 million tonnes, with about 17 million tonnes being used for ethanol production.
Corn prices have risen by about 20 percent in just the last five months, from approximately ₹14,000 per tonne to around ₹26,500 per tonne. Corn is a crucial raw material for the poultry industry, contributing significantly to feed costs. Feed accounts for roughly 65-70 percent of total poultry production costs.