The rise in egg prices is connected to the increased cost of poultry feed, which is driven by the growing use of corn for ethanol production. Over the past year, the price of eggs has increased by approximately 35–40%, and further upward pressure on prices is expected during the winter months due to rising demand.
Inflationary effects are being felt across daily food products; following sugar and other foodstuffs, there has been a significant surge in egg prices. According to the National Egg Control Committee (NECC), the farm-gate price for one egg reached about 7 rupees, while in many retail markets it sells for between 8.50 and 9 rupees. The primary reason for this increase is the rising cost of poultry feed.
Corn is a key ingredient in chicken feed, and the demand for this corn is rapidly increasing for ethanol production. This puts pressure on feed costs, which is reflected in the price of eggs.
As part of the policy to increase the share of ethanol in Indian gasoline, the use of grains for ethanol production has significantly grown, with corn becoming an important raw material component. The government has taken steps to increase the availability of corn for ethanol production and to incentivize corn cultivation around ethanol plants. It is projected that about 125.78 million tons of corn will be used for ethanol production in the ESY 2025-26 season, demonstrating rapid growth in demand within the ethanol sector. Recent data shows that corn has become the largest raw material for ethanol production.
The Economic Survey 2025-26 also highlighted this shift. According to the report, the increased demand for corn for ethanol has impacted its prices and farmers' decisions. Between FY22 and FY25, the average annual growth rate of the regulated price of corn ethanol was 11.7%, which has increased the attractiveness of corn farming for farmers.
Feed constitutes the largest expense item for the poultry industry, and corn is a vital part of it. Changes in commodity prices, such as those for corn and soy, directly affect the cost of chicken feed. When the demand for corn rises in both the ethanol and poultry sectors, price pressure naturally occurs. However, the recent rise in corn prices is not solely due to the needs of the ethanol sector; demand for poultry feed, weather conditions, changes in production, and prices of other feed ingredients are also factors. Therefore, it cannot be claimed that the current rise in egg prices is caused exclusively by ethanol.
The increase in domestic demand for corn has also affected imports into India. In 2024, India imported about 8.9 million tons of corn from Myanmar and Ukraine. Imports also showed acceleration during 2024–25. These changes are significant because India previously exported corn. Now, due to growing domestic demand for feed, ethanol, and other industrial needs, domestic supply has come under pressure. Nevertheless, domestic corn production is also increasing. Government data indicates that corn production in India reached about 43.4 million tons in 2024–25. The government is also focusing on increasing corn production and yield in light of the growing demand from the ethanol and feed sectors.
Egg demand remains year-round, but consumption typically increases in winter. If the cost of corn and poultry feed remains high, further pressure on egg prices is possible during periods of increased demand. However, the magnitude of the price increase will depend not only on the cost of corn. Chicken productivity, weather, other feed expenses, and market egg supply will also play a significant role. Currently, the situation is that the growing demand for corn for ethanol has created a new cost challenge for the poultry industry. While increasing the share of ethanol in gasoline benefits by reducing dependence on oil imports, the rising demand for agricultural products like corn also influences feed and egg prices.