Particle.news

Ethanol Drive Pushes Maize Prices Higher and Lifts Egg Costs

Diversion of maize to ethanol tightens poultry feed supplies, risking higher egg prices this winter.

Overview

  • Egg prices have risen about 35–40% over the past year, with farm-gate rates near Rs 7 per egg and retail around Rs 8.50–9, according to NECC figures.
  • Maize has become much more expensive, roughly doubling over three years to about Rs 26,500 per tonne, and it makes up about 65–70% of poultry feed costs.
  • Maize used for ethanol rose sharply from about 1 million tonnes in 2022 to roughly 17 million tonnes recently, and industry estimates say it could reach 25 million tonnes by 2030.
  • The maize squeeze has changed trade flows: India moved from exporter to importer, bringing in a record roughly 1 million tonnes in FY25 and importing about 0.5 million tonnes currently.
  • Producers say continued ethanol-driven maize diversion plus winter demand, higher soybean prices and weather and bird-health pressures will likely keep feed costs up and leave egg prices firm or rising, creating a policy tradeoff between fuel targets and food affordability.