Newz Desk, Durgapur: Eggs, one of the most affordable sources of protein for millions of Indians, are becoming increasingly expensive, putting additional pressure on household budgets. According to data from the National Egg Coordination Committee (NECC), egg prices have risen by around 35–40% over the past year, with the growing demand for corn from the ethanol industry emerging as one of the key factors behind the price rise.
From breakfast omelettes and fried eggs to boiled eggs and curries, eggs are a regular part of meals across income groups. However, rising production costs are now pushing up retail prices. Eggs are currently being sold by poultry farms at around Rs 7 per egg, while retail prices in several parts of the country have reached Rs 8.50–9 per egg. Prices on online platforms are reportedly even higher.
Ethanol Demand Puts Pressure on Corn Supply
Industry experts point to the government’s increasing focus on E20 petrol, which contains up to 20% ethanol, as an important factor behind the growing demand for corn.
Corn is a major ingredient in poultry feed. However, an increasing share of the country’s corn production is now being diverted towards ethanol manufacturing. According to a senior NECC official, nearly 37% of India’s total corn production is currently being consumed by ethanol plants, putting pressure on supplies available for poultry feed manufacturers.
The rising cost of corn has had a direct impact on poultry production. Corn accounts for around 65–70% of the cost of poultry feed, making its price a crucial factor in determining the overall cost of producing eggs and poultry products.
Corn Prices Nearly Double
Corn prices have increased sharply over the past three years. From around Rs 14,000 per tonne three years ago, the price has reportedly climbed to approximately Rs 26,500 per tonne at present. At the same time, the quantity of corn being used for ethanol production has increased significantly. In 2022, around 1 million tonnes of corn were used for ethanol production. This rose to approximately 6 million tonnes in 2024 and is estimated to have reached 17 million tonnes this year. If the current trend continues, the requirement could rise to around 25 million tonnes by 2030.
The combination of higher feed costs and tighter corn availability is putting poultry farmers under increasing financial pressure, eventually translating into higher egg prices for consumers.
Prices May Remain High in Coming Months
Experts have warned that egg prices may remain elevated in the coming months. Demand for eggs traditionally rises during the winter season, which could put further pressure on prices. With poultry farmers already grappling with rising input costs and competition for corn from the ethanol industry, consumers may have to brace for continued high egg prices, and possibly another increase in the months ahead.
The development has once again highlighted the complex link between India’s ethanol-blending policy, agricultural commodity prices and the cost of everyday food items.
