Chicken, Egg Prices Likely to Increase as Poultry Industry Cuts Production
Rising feed costs and expected demand slowdown during the festive season have prompted the poultry industry to reduce production by 25 percent, raising concerns over higher chicken and egg prices.
Consumers may soon have to pay more for chicken and eggs as India’s poultry industry moves to reduce production in response to soaring feed costs and market uncertainties. Industry leaders believe the move is necessary to protect farmers from mounting financial pressure.
The decision was taken during an emergency meeting of poultry industry representatives, where stakeholders agreed to reduce poultry production by around 25 percent with immediate effect. The move comes at a time when input costs have risen significantly, making poultry farming less profitable for many producers.
One of the biggest concerns for farmers is the sharp increase in soybean meal prices, a key ingredient in poultry feed. Industry representatives say prices have jumped by more than 40 percent in a short period, pushing production costs to unsustainable levels and reducing profit margins across the sector.
Apart from rising costs, the industry is also preparing for a seasonal decline in demand. The period between July and October includes major festivals such as Shravan, Navratri and Durga Puja, during which chicken consumption traditionally drops in many parts of the country.
To manage supply levels and avoid excess stock, poultry producers have started reducing breeder bird inventories in several regions. Industry sources indicate that this step is aimed at balancing production with expected market demand over the coming months.
Poultry associations have alleged that artificial shortages and speculative trading in soybean stocks have contributed to the sharp rise in feed prices. They argue that sufficient soybean production exists in the country, but market practices have driven prices higher than expected.
Industry bodies are also urging the government to allow imports of genetically modified (GM) soybean meal to ease feed shortages and stabilize prices. They believe such measures could help reduce production costs and support both farmers and consumers.
Experts warn that if production remains lower while demand recovers later in the year, chicken and egg prices could increase further. The poultry sector’s latest move is therefore being closely watched by traders, farmers and consumers alike.
