Egg Prices May Rise Sharply To Rs 20? Here’s What Corn Has To Do With It

Amid rising prices of onions, sugar and pulses, egg prices are also expected to surge sharply. Egg prices in India have already increased by around 35-40% over the past year, and they are likely to become even more expensive in the coming months.

According to data from the National Egg Coordination Committee (NECC) cited in a report by The Economic Times, farm-gate egg prices are currently around Rs 7 per egg, while retail prices in several markets range between Rs 8.50 and Rs 9.

Estimates by poultry industry players and market experts suggest that egg prices could rise to Rs 20-25 per egg this winter. However, such record-high prices are expected to be largely limited to branded, premium and speciality eggs.

Will Egg Prices Really Rise To Rs 20-25?

As mentioned, the projected record prices are expected to apply mainly to certain premium and speciality egg brands. Consumers are unlikely to have to pay such prices for regular-quality eggs.

However, the cost of producing eggs has risen significantly, with maize emerging as one of the biggest concerns for the poultry industry. Maize is widely used in poultry feed.

The government’s 20% ethanol blending policy has increased demand for maize from distilleries. Recent industry estimates suggest that around 37% of India’s maize production is now being used for ethanol production.

The increased demand has pushed maize prices sharply higher. Over the past three years, prices have risen from around Rs 14,000 per tonne to nearly Rs 26,500 per tonne.

Recent reports citing parliamentary data said India’s maize production stands at around 43.4 million tonnes, of which nearly 17 million tonnes is used for ethanol production.

Maize accounts for around 60-70% of poultry feed, meaning the rise in feed costs has directly increased egg production expenses. The higher input costs are subsequently being reflected in egg prices.

Besides maize, soybean is another important source of protein in poultry feed. A sharp increase in soybean meal prices has added further financial pressure on poultry farmers.

Egg Demand Usually Rises In Winter

Egg consumption in India typically increases during the winter months. If demand rises while poultry feed prices remain elevated, egg prices could come under further pressure.

However, this does not mean that every egg in India will be sold for Rs 20-25. Premium, speciality and branded eggs are different from regular eggs, and retail prices also vary across states and cities.

Industry officials expect prices to remain under pressure as winter approaches, particularly if maize continues to be diverted towards ethanol production and poultry feed costs do not decline.