Global War’s Double Blow to Indian Poultry Industry; Feed Costs Rise, Egg Prices Plummet

Nagpur/Lalit Lanjewar:

The ongoing conflict between the USA, Israel, and Iran is having a massive impact on global energy security, the economy, and trade. Its tremors are now being felt intensely within the Indian poultry industry. The war has disrupted international supply chains, leading to a direct impact on feed costs and egg market prices in India.

Surge in Feed Costs – Amino Acids the Key Factor

The biggest challenge currently facing the poultry industry is the skyrocketing prices of Amino Acids and Feed Supplements. Amino acids like Lysine, Methionine, Threonine, and Tryptophan are essential for protein synthesis in animals. Additionally, components like Mineral Mixtures, Vitamins (A, D3, E, B-Complex), Probiotics, and enzymes like Phytase are used to improve feed quality.

Since the supply of these critical ingredients relies heavily on imports, the war has disrupted global logistics, leading to a rapid price hike. Industry experts note that as prices of these imported components soared over the last few weeks, poultry feed costs have increased by at least 10%.

Impact on Egg Exports; Prices Crash

Simultaneously, the situation in the Middle East has severely affected egg exports. Saudi Arabia has reportedly imposed bans on poultry meat and egg imports from 40 countries due to food security concerns. Furthermore, restrictions on sea ports and air routes due to the war have brought exports to a near standstill.

Exporters in Namakkal, Tamil Nadu—India's major hub for egg production and export—have been hit hard. With sales halted in foreign markets, surplus stock is being diverted to the domestic market, forcing prices down.

While the current production cost is approximately ₹4.50 per egg, the selling price has crashed to around ₹3.50. Exporters estimate a daily loss of nearly ₹5 crore due to this disparity.

Industry Facing a Tough Ordeal

The "double blow" of rising feed costs and falling egg prices has pushed layer poultry farmers into a severe financial crisis. Notably, in Northeast India, feed prices have surged by ₹150 to ₹200 per 50kg bag in the last 15 days, a trend now reflecting across the country.

A Massive Opportunity for “Make in India”

According to Lalit Lanjewar, a young researcher in the poultry sector, “This crisis has created a major opportunity for India. This is the right time to focus on the domestic production of Amino Acids and feed-grade inputs.”

Currently, India depends on other countries for ingredients like Lysine, Methionine, and Threonine. However, since India has an abundant supply of molasses (a byproduct of sugar), there is immense potential to establish fermentation-based industries.

Investing in this sector would:

* Reduce dependency on imports.

* Save foreign exchange reserves.

* Provide cheaper raw materials for the poultry feed and pharma industries.

* Generate employment in rural areas.

The Way Forward

Given the current global instability, strengthening "feed security" has become imperative for India. By achieving self-reliance in amino acid production, India can not only meet domestic demand but also emerge as a major exporter. Lanjewar points out that while feed prices have risen, chicken meat prices remain relatively stable. Overall, the global conflict is severely impacting the Indian poultry sector, necessitating urgent strategic decisions to navigate this crisis.