Egg prices jump 40%: How ethanol is making breakfast costlier
What's the story
Egg prices in India have seen a sharp spike, thanks to the rising diversion of maize for ethanol production. The National Egg Co-ordination Committee (NECC) reports that egg prices have risen by nearly 35-40% over the past year. This is largely due to an increase in poultry feed costs, as maize is a key ingredient in these feeds and has seen its price nearly double in three years.
Cost escalation
Maize prices have surged
Maize prices have surged from ₹14,000 per ton three years ago to nearly ₹26,500 now.
This steep rise has significantly increased production costs for poultry farmers, who rely on maize for 65-70% of their total production costs.
The NECC official also noted that "any sustained rise in maize prices is particularly painful for the industry."
The poultry industry consumes some 60% of the country's maize, putting it directly in competition with the ethanol industry for the same crop.
Supply constraints
17M tons mazie being diverted for ethanol production
India's total maize production is around 43.4 million tons, with nearly 17 million tons now being diverted for ethanol production.
This has tightened supplies available for poultry feed and other uses, directly affecting the cost of producing eggs and chicken.
"Maize and soybean prices have a direct bearing on poultry feed costs, and any sustained increase in feed prices eventually reflects in the cost of producing eggs and chicken," a senior industry executive told the Economic Times.
Export shift
Once an exporter of maize, India now imports it
The ethanol industry's demand is also changing India's position in the global maize market.
Once an exporter of maize to Bangladesh and Vietnam, India is now facing reduced surplus due to rising domestic demand from the poultry sector and increased diversion for ethanol.
This has even led to imports, with maize imports hitting a record 1 million tons in FY25.