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In India, the policy of mixing 20% ​​ethanol in petrol i.e. E20 is not only affecting the fuel of vehicles. This may also affect the prices of food items. Its effect is especially visible on the prices of eggs and chicken. Actually, the consumption of corn to make ethanol is increasing. Maize is also used in large quantities in poultry feed. In such a situation, the increase in the price of maize can have a direct impact on the prices of poultry feed and then eggs and chicken.

According to the National Egg Coordination Committee (NECC), the price of eggs has increased by about 35-40% in the last one year. At present, the price of an egg from a poultry farm is around Rs 7, whereas in the retail market it is being sold for Rs 8.50 to Rs 9. There is a possibility of further increase in prices due to increase in demand in winter.

Demand for corn for ethanol increased

The direct connection between ethanol and egg prices is corn. A large amount of maize is used in making ethanol, while poultry companies also depend heavily on maize for feed. In such a situation, due to increase in demand for corn from ethanol companies, corn may become expensive or less available for the poultry industry. This may also affect the prices of eggs and chicken in future.

According to a senior NECC official, about 37% of the total maize produced in the country is now going to ethanol distilleries. According to Parliament data, about 43.4 million tonnes of corn is produced in India, of which about 17 million tonnes is being used in ethanol production.

The price of maize was Rs 14 thousand per tonne about three years ago, which has now increased to around Rs 26,500 per tonne. Its price has increased by about 20% in the last five months alone. About 60% of the maize produced in India is used by the poultry sector. Poultry feed becomes expensive due to increase in the price of corn and soybean. This has a direct impact on the cost of poultry farming and if the cost continues to increase for a long time, eggs and chicken can also become expensive.

E20 alone is not responsible

However, ethanol alone cannot be held responsible for the increase in the price of eggs and chicken. Heat, weather changes, mortality rate of chickens and price of other feed ingredients also affect the cost of poultry production.

Meanwhile, ethanol production from corn has increased rapidly. It was around 10 lakh tonnes in 2022, which has increased to more than 60 lakh tonnes in 2024 and now around 17 million tonnes. It is estimated to reach around 25 million tonnes by 2030. Due to increasing demand, India is now also importing maize. Imports reached a record level of about 10 lakh tonnes in the financial year 2024-25. In such a situation, if domestic production does not increase rapidly, pressure on maize prices and poultry costs may remain.