Rising Maize and Broken Rice Prices May Drive Up Egg and Chicken Costs by December

Your meal costs may rise in December as egg and chicken prices are projected to increase by 25-30%. This surge is attributed to a 30-45% rise in the cost of poultry feed ingredients, including maize and broken rice, over the past month compared to the same period last year. The prices of these key ingredients have doubled in the past year, with farmers and traders holding back stocks, suggesting that the upward trend may persist through December.

Wholesale egg prices, currently between Rs 6-7 per egg, are expected to reach Rs 7-8 by December. Similarly, the wholesale price of dressed chicken without skin is anticipated to rise from Rs 225-250 per kg to Rs 260-275 per kg. December and January are peak months for poultry consumption, driven by increased demand during the Christmas and New Year festivities.

Maize prices have surged from around Rs 18 per kg last year to Rs 34 per kg, with a recent report indicating prices were between Rs 26-27 per kg just a month ago. Industry participants are concerned that prices could hit Rs 40 per kg by December as intermediaries stockpile maize in anticipation of further increases. Broken rice has also seen significant price hikes, rising from Rs 14-15 per kg in November 2022 to Rs 31-32 per kg, up from approximately Rs 22-23 per kg a month ago.

A deficient monsoon in Maharashtra and Karnataka, key kharif maize-producing states, is expected to result in a 15-16% decline in India’s kharif maize output. KG Anand, general manager of Venkateshwara Hatcheries, noted that the rising costs have made it difficult to switch to alternative cereals like jowar and bajra for poultry feed, as these options have also become expensive. He added that while production costs have increased significantly, the entire burden cannot be passed on to consumers. Anand anticipates a production drop of over 20% in December and January, as farmers may sell younger birds to mitigate feeding costs.