Egg prices in India have cracked a new record, with farm-gate procurement in Namakkal—the country's largest egg-producing hub—reaching ₹6.80 per egg since July 16, according to the National Egg Coordination Committee (NECC). The previous high was ₹6.40 per egg on December 23 last year. Retail prices have surged to nearly ₹8 per egg in many markets and ₹8.50-9 in parts of Kerala, as reported by AGRI_TIO.
Summer's impact on production
The scorching summer has delayed the impact on market supply, according to industry representatives. Birds now entering the market were hatched during the peak heat period, resulting in lower productivity. NK Saravanakumar of KL Poultry Farm stated that the farm-gate price of an egg has climbed to around ₹6.80 this year from the previous high of ₹6.40, pushing retail prices to nearly ₹8 per egg from ₹5-6 three months ago. Namakkal, home to around 1,100 poultry farms with over seven crore birds, produces nearly six crore eggs a day, supplying the noon meal scheme, several states and export markets. While the region has the capacity to produce around nine crore eggs a day, actual output is currently about six crore, reflecting the impact of weather and rising production costs.
Feed inflation squeezes margins
The production shortfall has been compounded by a sharp rise in feed costs. Saravanakumar said maize prices have increased to ₹28 per kg from ₹23 over the past three months, while soybean prices have risen to ₹71 per kg from ₹45, prompting some producers to cut output. Vangili Subramaniam, President of the Tamil Nadu Poultry Farmers' Cooperative Society, said soaring input costs have squeezed farmer margins despite higher egg prices.
Ricky Thaper, Joint Secretary of the Poultry Federation of India, noted that as the poultry sector expands, the long-term availability of two critical feed ingredients—soybean meal and maize (corn)—is becoming a growing concern. Naveen Pasuparthy, Deputy Chairman of CLFMA of India and President of the Karnataka Poultry Farmers and Breeders Association, said the sharp increase in soybean meal and maize prices has significantly raised production costs. Maize prices have risen to ₹2,800-2,900 per quintal, while soybean meal has jumped to around ₹67,000 a tonne from ₹39,000-40,000 during March-April.
Broiler prices also rise
Higher temperatures have reduced bird productivity. Subramaniam said the yield of the bird has dropped: a bird normally attains a weight of 2.5 kg in 40 days, but due to heat it weighs only 1.8 kg. Layer birds' mortality has also increased. The tight supply has pushed up broiler prices as well: farm-gate chicken prices are currently around ₹150 a kg, and retail prices in several markets have climbed to ₹250 a kg.
Feed security concerns beyond the price spike
Beyond the immediate price spurt, industry is flagging feed security. Thaper said India is currently facing a shortage of about 1.5 million tonnes of soybean meal before the arrival of the new crop later this year. While the poultry industry is expanding at 7-8 per cent annually, domestic production of maize and soybean is growing by only 1-2 per cent, widening the supply gap. Since feed accounts for 65-70 per cent of poultry production costs, ensuring adequate supplies of maize and soybean meal is critical.
| Price Benchmark | Current (₹) | Previous (₹) | Change |
|---|---|---|---|
| Farm-gate egg (Namakkal) | 6.80 | 6.40 | +6.25% |
| Retail egg (all-India) | ~8 | 5-6 (3 months ago) | +33-60% |
| Maize per kg | 28 | 23 (3 months ago) | +21.7% |
| Soybean per kg | 71 | 45 (3 months ago) | +57.8% |
| Soybean meal per tonne | ~67,000 | 39,000-40,000 (Mar-Apr) | +67-72% |
Outlook
With the supply-demand mismatch likely to persist, NECC has been revising prices upward since June: the farm-gate rose from ₹5.70 on June 1 to ₹6.45 on June 17, ₹6.50 on June 26, ₹6.55 on July 10, ₹6.60 on July 12, and ₹6.65 on July 13 before settling at ₹6.80 from July 16. Weak productivity due to heat and high feed costs should keep prices elevated. Key data to watch: arrival of the new soybean crop later this year and any moderation in maize prices. Industry participants, including Thaper and Pasuparthy, will be monitoring feed ingredient availability closely.
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