Why is your egg getting so expensive? The surprising Ethanol link

Eggs, long considered one of India's most affordable sources of protein, are becoming increasingly expensive, with prices rising sharply over the past year. Industry estimates indicate that egg prices have climbed by around 35%-40%, with farm-gate rates touching about Rs 7 per egg and retail prices reaching nearly Rs 14 on some online delivery platforms.

The sharp rise has put the spotlight on an unexpected factor: ethanol production. While ethanol and eggs have no direct connection, the growing diversion of maize toward ethanol production is tightening supplies of a key ingredient used in poultry feed, industry representatives say.

Maize is a major component of poultry feed, and India has increasingly been using the crop to produce ethanol under its Ethanol Blended Petrol (EBP) programme. As more domestically produced maize is diverted to ethanol plants, less is available for the poultry industry, contributing to higher feed costs.

Parliamentary data cited by industry sources shows that India produces around 43.4 million tonnes of maize annually, with about 17 million tonnes being used for ethanol production. That means roughly 37% of domestic maize output is now estimated to be directed toward ethanol.

The shift has coincided with a steep increase in maize prices. A tonne of maize that cost around Rs 14,000 three years ago now costs as much as Rs 26,500, putting additional pressure on poultry farmers.

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Feed accounts for roughly 65%-70% of poultry farming costs, and poultry feed prices have increased by up to 20% in the past five months, according to industry estimates. Higher input costs are ultimately reflected in the price consumers pay for eggs.

The issue has also drawn attention on social media. Fitness influencer Chirag Barjatya highlighted the increase in egg prices on X.

"Eggs are now costing Rs 9–10 per piece. Almost 40% hike…," Barjatya posted, pointing to the rising cost of what has traditionally been a relatively inexpensive protein source.

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He also noted increases in the prices of other protein-rich foods, saying whey protein costs around Rs 4,200 per kg and high-protein paneer around Rs 180. Barjatya argued that maintaining a high-protein diet is becoming increasingly expensive, particularly for vegetarians, with a diet providing 100 grams of protein a day potentially costing Rs 10,000-12,000 a month.

However, maize and ethanol are not the only reasons behind the increase in egg prices. Poultry industry experts point to high temperatures, changing weather patterns, variations in poultry survival rates and rising costs or shortages of other feed ingredients as additional factors.

Seasonal demand could add to the pressure. Egg consumption generally rises during winter, and the National Egg Coordination Committee (NECC) has indicated that stronger demand in the coming months could push prices higher if supplies remain tight.

The developments highlight how India's push to expand ethanol blending can have knock-on effects across other sectors, with competition for maize affecting the cost of poultry production and, ultimately, a staple source of protein for consumers.