Sunny side down? Egg prices rise on ethanol push

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Key points

• Rising diversion of maize to ethanol production has significantly rose poultry feed costs, leading to a 35-40% surge in egg costs over the past year.
• Maize is the biggest cost for poultry farmers, accounting for 65-70% of total poultry production costs.
• New Delhi: After driving sugar rates higher, ethanol is now putting pressure on another key food item: eggs.
• Rates up almost 40% over last year as rising diversion of maize for ethanol production tightens feed supplies.
• The Economic Times daily newspaper is available online now.

Nifty24, 334.55115.5. Motilal Oswal Midcap Fund Direct-Growth. The Economic Times daily newspaper is available online now. Sunny side down? Egg rates rise on ethanol push. Sunny side down? Egg rates rise on ethanol push. ET BureauLast Updated: Aug 26, 2026, 12: 14: 00 AM IST.

Rising diversion of maize to ethanol production has significantly rose poultry feed costs, leading to a 35-40% surge in egg costs over the past year. Maize rates have almost doubled in three years, impacting the poultry industry which relies on it for 65-70% of its production costs. Experts anticipate further cost increases as winter demand rises and maize diversion for ethanol is projected to grow.

New Delhi: After driving sugar rates higher, ethanol is now putting pressure on another key food item: eggs. Rising diversion of maize, a key ingredient in poultry feed, to produce ethanol has pushed up feed costs and, in turn, egg rates. Egg rates have climbed around 35-40% over the past year, according to data from the National Egg Co-ordination Committee (NECC). Eggs now cost regarding ₹7 apiece ex-farm. Retail rates range from ₹8.50 to ₹9.00. When demand for eggs typically increases, poultry industry executives expect rates to remain firm and potentially rise as winter approaches. "Roughly 37% of the total maize production is now going to ethanol distilleries. Previously one year, egg rates have gone up by almost 40% and are probable to rise further, " a senior NECC official informed ET. Meanwhile, the government's ethanol blending mandate requires oil firms to mix petrol with biofuel for sale at fuel pumps. As the ethanol percentage in blended petrol has rose to 20%, diversion of sugarcane and maize for its production has risen, in turn affecting their supplies for sugar manufacturing and feedstock.

Against the backdrop of the shortage, maize costs have rose to almost ₹26, 500 per tonne from around ₹14, 000 three years ago, raising production costs for poultry farmers. Rates have risen by almost 20% previously five months alone. Live Events.

"Maize is the biggest cost for poultry farmers, accounting for 65-70% of total poultry production costs. Any sustained rise in maize rates is particularly painful for the industry, " the NECC official stated.

For now, sunny side down? Egg prices rise on ethanol push remains the part of the story worth watching, and further updates are likely as more details are confirmed.