Why Egg, Chicken and Milk Prices Are Unlikely to Fall Soon

Egg, chicken and milk prices are unlikely to fall sharply in the near future because the cost of producing them remains high. A major reason is the rising price of animal feed, especially maize, soybean meal and other protein-rich ingredients. 

Why Are Feed Prices Rising?

Feed prices have risen mainly because the cost of maize and protein-rich ingredients used in animal feed has increased. These ingredients form a large part of poultry and cattle feed, so even a moderate rise in their prices can increase the overall cost of livestock production. 

Maize is the main source of energy in animal feed.

• It accounts for around 55-65% of broiler feed, used for chickens raised for meat.
• It accounts for around 50-60% of layer feed, used for egg-producing chickens.
• It makes up around 15-20% of cattle feed.

Livestock also need protein for growth and production. This comes mainly from soybean meal and oilseed cakes, which are left after extracting oil from soybean, mustard, groundnut, sunflower and cottonseed.

• Soybean meal accounts for around 25-30% of broiler feed.
• It accounts for around 18-20% of layer feed.
• Oilseed cakes and meals make up around 40-50% of compound cattle feed. 

The rise in prices of these ingredients has therefore pushed up the cost of feed. At Alangeyam in Erode, maize prices rose from around ₹2,537 per quintal in August 2025 to ₹2,759 in August 2026. Soybean meal prices at Indore also rose sharply from ₹38,186 per tonne to ₹58,156 per tonne over the same period, although they have eased somewhat since then.

Other protein sources have also become costlier. Groundnut oilcake, rapeseed meal, cottonseed meal and rice bran extraction have all recorded significant increases. This keeps overall feed costs high even when the price of one particular ingredient starts coming down.

Why Feed Costs May Remain High

The bigger concern now is maize, as its availability may remain under pressure in the coming months.

• Lower maize cultivation: Government data shows that kharif maize acreage has fallen by 4.1%, raising concerns about future supply.
• Lower production outlook: The United States Department of Agriculture has projected India’s maize production at around 50 million tonnes in 2026-27, compared with a record 55.1 million tonnes in 2025-26.
• Weather risks: The strengthening El Niño could also affect the upcoming rabi maize crop, adding uncertainty to future supplies.
• Competition from ethanol: Maize is also used for ethanol production. If maize prices continue to rise, using more maize for ethanol could further tighten its availability for animal feed.

This creates a difficult situation for the livestock sector. Soybean meal prices have started to ease, but higher maize prices could offset this relief. As a result, the overall cost of feed may remain high even if some individual ingredients become cheaper.

‹ ›

Impact on Egg and Chicken Prices

Higher feed costs are directly increasing poultry production costs.

• Eggs: Layer feed has risen from ₹24-26 to ₹30-32 per kg in four months. Feed accounts for around 65-70% of egg production costs.
• Chicken: Broiler feed has risen from ₹40 to ₹46 per kg, taking the production cost of chicken to around ₹110 per kg.

Even when egg and chicken prices fall temporarily due to seasonal demand, high feed costs limit how much prices can decline.

Why Egg, Chicken and Milk Prices May Not Fall Soon

The recent easing in soybean meal prices offers some relief, but maize remains a major concern.

• Lower supply: Kharif maize acreage has fallen by 4.1%, while the United States Department of Agriculture expects India’s 2026-27 maize production at 50 million tonnes, down from a record 55.1 million tonnes in 2025-26.
• Weather risk: El Niño could affect the upcoming rabi maize crop, adding further uncertainty to supplies.
• Ethanol demand: Maize is also used for ethanol production. If maize prices continue to rise, the government may have to reconsider how much maize is diverted to ethanol.

This creates a difficult policy trade-off between food and feed security and ethanol blending. If feed costs remain high, egg, chicken and milk prices may also remain under pressure.

What Can Be Done?

The immediate challenge is to keep feed costs under control without disrupting other policy priorities.

• Increase maize supply: Higher productivity and better storage can reduce pressure on domestic maize prices.
• Balance maize use: If maize prices remain high, the government may need to reconsider its diversion for ethanol to protect animal-feed supplies.
• Strengthen oilseed production: More domestic soybean, mustard and other oilseeds can improve the availability of protein-rich feed ingredients.
• Improve feed efficiency: Better animal nutrition, breeds and farm practices can reduce feed costs per unit of milk, meat or eggs.

The issue is therefore not just about food prices. Keeping livestock products affordable also requires securing the feed that goes into producing them.