Egg Price Hike: The effect of inflation on everyday food items is clearly visible during the festive season. First the Chinese started making people cry. After this there was a sudden increase in the price of onion. Now after sugar and onion, egg has become expensive. There has also been a sharp increase in the price of eggs. The price of eggs has increased by about 35-40 percent in the last one year. There is a direct connection between the cost of eggs and ethanol being said.
According to the National Egg Co-ordination Committee (NECC), the price of an egg from a poultry farm has reached around Rs 7. Whereas in many retail markets it is being sold for Rs 8.50 to Rs 9. A major reason for this rise is the rising cost of poultry feed.
In fact, in view of the increasing demand of ethanol and feed sector, the government has also emphasized on increasing maize production and productivity. Maize is one of the main raw materials in chicken feed. The demand for this maize for making ethanol is also increasing rapidly. This has increased pressure on feed costs, the effect of which is visible on the price of eggs. Changes in the prices of raw materials like corn and soybean have a direct impact on the cost of feed for chickens. In such a situation, when the demand for maize increases from both the ethanol and poultry sectors, it is natural that there will be pressure on prices. However, demand for ethanol is not the only reason behind the recent rise in maize prices. Demand for poultry feed, changes in weather and production, and prices of other feed inputs also determine its price. Therefore, it would not be correct to attribute the current rise in eggs to ethanol alone.
Pressure to increase egg prices in winter
The demand for eggs remains throughout the year, but its consumption generally increases in winter. In such a situation, if the cost of corn and poultry feed remains high, there may be further pressure on the price of eggs amid increased demand. However, how much the price will increase will not depend only on the price of corn. Productivity of chickens, weather, other feed costs and supply of eggs in the market will also play a big role in this. At present the picture is that the increasing demand for corn for ethanol has definitely created a new cost challenge for the poultry industry.
Demand for corn for ethanol is increasing
Let us tell you that under the policy of increasing blending of ethanol in petrol in India, the use of grains in ethanol production has increased rapidly. In this, maize has emerged as an important feedstock. The government has also taken steps to increase the availability of maize for ethanol production and to promote maize production around ethanol plants. About 125.78 lakh tonnes of maize is estimated to be used for ethanol production in ESY 2025-26. From this it can be estimated how fast the demand for maize has increased in the ethanol sector.
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