Egg, chicken, milk prices: Why they remain high, Pg16

Key Highlights:

• India's livestock sector's Gross Value Added (GVA) contribution to agriculture increased from 34% of crops in 2013-14 to 57% in 2023-24.
• High prices of eggs, chicken, and milk are primarily driven by soaring costs of feed ingredients, particularly maize and soybean meal.
• Maize prices at Alangeyam, Tamil Nadu, rose from Rs 2,537 to Rs 2,810 per quintal between August 2025 and September 2026.
• Soybean meal prices at Indore, Madhya Pradesh, surged from Rs 38,186 to Rs 58,156 per tonne between August 2025 and August 2026.
• Egg prices in Delhi reached Rs 600 per 100 pieces farmgate, with the July 2026 average being 38.7% higher than the previous year.
• The US Department of Agriculture projects India's maize production to decline to 50 million tonnes in 2026-27 from 55.1 million tonnes in 2025-26.

Feed Costs.jpg

Detailed Insights:

• Feed costs, primarily maize (55-65% in broiler feed) and soybean meal (25-30% in broiler feed), constitute 65-70% of egg production expenses.
• The El Niño phenomenon contributed to higher prices through extended summer, delayed monsoon, water shortages, and increased bird mortality.
• The CLFMA (Compound Livestock Feed Manufacturers Association) of India noted a "ping-pong game" between fluctuating soybean meal and hardening maize prices.
• Kharif maize acreage is significantly down by 4.1%, raising concerns about future supply and prices.
• The government may review the diversion of maize for ethanol production if feed costs continue to rise, potentially impacting the E20 blending target.
• Soybean meal prices have softened recently due to stable Kharif acreage and estimated imports of 0.9 million tonnes in 2025-26.
• The National Egg Co-ordination Committee (NECC) and Poultry Federation of India have highlighted the shrinking profit margins for farmers due to increased feed costs.

Key Concepts Involved:

• Gross Value Added (GVA): A measure of the value of goods and services produced in an area, industry, or sector of an economy.
• El Niño: A climate pattern describing the unusual warming of surface waters in the eastern tropical Pacific Ocean, impacting global weather.
• Kharif Crop: Monsoon crops sown in June-July and harvested in September-October, dependent on rainfall.
• Rabi Crop: Winter crops sown in October-November and harvested in March-April, requiring less water.
• E20: A blend of 20% ethanol with 80% petrol, part of India's biofuel policy to reduce crude oil imports and emissions.