Indian egg prices crack new record as heat, feed costs bite

Egg prices have climbed to an all-time high in Namakkal, India's largest egg-producing hub, as a prolonged summer, lower production and soaring feed costs tighten supplies. This comes amid robust demand.

Industry stakeholders say the supply-demand mismatch could keep prices elevated in the coming weeks, while warning that shortages of key poultry feed ingredients such as soybean meal and maize pose a longer-term challenge.

The National Egg Coordination Committee (NECC) revised the farm-gate procurement price to a record ₹6.65 per egg on July 13, surpassing the previous high of ₹6.40 recorded on December 23 last year. Since July 16, NECC has maintained the procurement price at ₹6.80 in Namakkal. Eggs are retailing at up to ₹8 apiece in many markets and ₹8.50-9 in parts of Kerala.

Summer’s impact

After last year's peak, prices had eased before beginning a steady climb from June. The farm-gate price 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. The NECC determines wholesale procurement prices based on production levels and market demand.

Industry representatives said the impact of the scorching summer is being felt now because birds entering the market were hatched during the peak heat period.

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.

According to NK Saravanakumar of KL Poultry Farm, farm-gate price of an egg has climbed to around ₹6.80 this year against the previous high of ₹6.40, pushing retail prices to nearly ₹8 per egg from ₹5-6 three months ago. While Namakkal 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, he said.

Feed inflation

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.

Higher temperatures have also reduced bird productivity. The tight supply situation has also pushed up broiler prices. Farm-gate chicken prices are currently around ₹150 a kg, while retail prices in several markets have climbed to ₹250 a kg, according to Subramaniam.

The yield of the bird has dropped. A bird normally attains a weigh tof 2.5 kg in 40 days. But due to the head, it weighs only 1.8 kg. Layer birds’ mortality, too, has increased, he said.

Ricky Thaper, Joint Secretary, Poultry Federation of India, said as the poultry sector continues to expand, the long-term availability of its two most critical feed ingredients-soybean meal and maize (corn) is becoming a growing concern.

Naveen Pasuparthy, Deputy Chairman, CLFMA of India and President, Karnataka Poultry Farmers and Breeders Association, said the sharp increase in soybean meal and maize prices has significantly raised production costs, resulting in higher prices of both eggs and chicken.

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, he said.

Beyond the current price spike, the industry has flagged growing concerns over feed security. Thaper said India is currently facing a shortage of around 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 to keeping eggs and chicken affordable, he said.

Industry associations have urged the Centre to allow limited imports of genetically modified soybean meal during the lean season until the new domestic crop arrives, arguing that the temporary measure would help bridge the supply gap, stabilise feed prices and support uninterrupted poultry production.

Robust demand

Despite higher prices, consumption remains firm. KS Ashok Kumar of MAA Integrators, Bengaluru, said the increase in egg and chicken prices is primarily due to the seasonal decline in production during summer, when bird mortality is higher, coupled with the delayed onset of the monsoon that prolonged hot weather.

Subramaniam said chicken is far more affordable than mutton, which costs over ₹750 a kg. “Over the past decade or so, prices of chicken have not increased compared to mutton, which has tripled,” he said.

In Kerala, which depends heavily on Namakkal for its egg supplies, retail prices have risen by around ₹2 per egg over the past two months to ₹8.50-9, according to CJ George of the Stall Owners Association, Ernakulam Market.

Kerala consumes around 3.5 crore eggs a day, accounting for nearly half of Namakkal's output. George said demand has remained steady as consumers continue to view eggs as one of the most affordable sources of protein.

Echoing the industry's optimism, Crisil said improved realisations from higher egg and broiler prices, coupled with steady demand, are expected to lift the Indian poultry industry's revenue growth to its long-term average of around 10 per cent this fiscal after a subdued performance last year. However, volatility in feed costs, broiler and egg prices, as well as bird flu outbreaks will remain key risks for the sector.

(With inputs from Prabhudatta Mishra, New Delhi; Vishwanath Kulkarni from Bengaluru; Sajeev Kumar from Kochi; TE Raja Simhan and Subramani Ra Mancombu from Chennai)

Published on July 23, 2026