Egg and chicken prices may rise by up to 30% in December

Consumers may have to spend more on eggs and chicken from December, with poultry prices expected to increase by 25-30% due to a sharp rise in the cost of animal feed ingredients such as maize and broken rice.

According to industry executives, maize and broken rice prices have surged significantly over the past year, increasing poultry production costs. Wholesale egg prices, currently ranging between Rs 6 and Rs 7 per egg, are expected to rise to Rs 7-8 by December. Similarly, dressed chicken without skin, currently selling at Rs 225-250 per kg at wholesale rates, could increase to Rs 260-275 per kg.

Maize prices have climbed from around Rs 18 per kg last year to Rs 34 currently, while broken rice prices have increased from Rs 14-15 to Rs 31-32 per kg. Industry participants expect maize prices to touch Rs 40 per kg by December due to stockpiling by traders and farmers.

A deficient monsoon in Maharashtra and Karnataka is also expected to reduce kharif maize production by 15-16%. Additionally, increased diversion of maize towards ethanol production has tightened supplies.

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Industry representatives warn that poultry production could decline by more than 20% during December and January as farmers may sell younger birds to reduce feed expenses.

In 2022, poultry farmers faced a similar cost crisis following a sharp increase in maize and soybean meal prices, forcing several producers to raise poultry prices.

The latest increase assumes significance as December and January witness higher demand during Christmas and New Year celebrations. Rising feed costs and seasonal demand could put additional pressure on household food budgets.