The onset of Ramadan has led to an increase in chicken prices, influenced by high demand, rising temperatures, and increased production costs. February witnessed a 10% increase in broiler chicken prices, exacerbated by a bird flu outbreak in Andhra Pradesh and a 20% rise in maize prices, a key feed component. This situation has pushed chicken prices up to ₹106-130 per kg in major Indian cities. The escalating feed costs, primarily due to the government's ethanol production push, are contributing to these price hikes, with retail food inflation reaching 8.66% in February, driven by rising vegetable and meat prices.
Maize, crucial for poultry feed, has seen a price surge from ₹36,000 to ₹40,000-41,000 per tonne in three months, affecting the cost of broiler production and egg prices. Although soymeal prices have remained steady, the overall increase in feed costs poses challenges for the poultry industry. The government's focus on ethanol production from maize, rather than sugarcane, is expected to strain domestic supplies, impacting the poultry and biofuel sectors. There are calls for allowing GM maize imports and increasing domestic production to meet the growing demands of these industries.
India, ranking fifth globally in meat production, has seen its poultry sector grow significantly, with poultry meat accounting for a substantial portion of the total meat output. However, the industry is predominantly a wet market, with only 6% of production being processed. Efforts are being made to shift towards more processed poultry products, aiming to increase this to 20-30% in the next decade, which would involve improving genetic animal health and feeding practices.