Summer heat and higher poultry feed prices – double whammy for poultry farmers in India

India’s commercial poultry and livestock sectors are facing a dual crisis of high input costs and harsh summer weather affecting demand.

A sharp spike in essential feed ingredients led by higher soya meal prices, paired with widespread heat stress across regional farming corridors, has driven a distinct misalignment between production costs and consumer retail prices. During summer months, traditionally in India, demand for eggs dives signficantly and that is visible in The National Egg Coordination Committee (NECC) reported farm gate prices for eggs in India this week.

NECC Prices reflect Retail Realities

The National Egg Coordination Committee (NECC) has anchored the national base rate at ₹5.00 per egg for 20th of May:

• Farmgate Price of table egggs: a standard 30-egg tray is priced at ₹150.00 and a full commercial crate (210 eggs / 1 peti) at a fixed wholesale index of ₹1,050.00
• Supermarket Premiumization: Modern retail outlets and supermarkets are charging a small mark with retail prices in the range of ₹6.00 to 7.00 per egg. This 20% markup covers secondary packaging, logistics and quick-commerce delivery overheads in certain markets

The Regional Variance: Geographical Spread Analysis

Due to localized supply densities and variable transport costs, the physical market shows sharp regional imbalances in farm gate prices across India:

• The Low-Cost Corridor (Ajmer — ₹5.00): Nestled within Rajasthan’s high-density layer-farming network, Ajmer maintains the lowest pricing tier, operating directly at farm-gate cost

• The High-Cost Hub (Chennai — ₹6.10): Positioned far from primary northern feed lines and grappling with high transport costs, Chennai marks the nation’s highest pricing tier. This premium reflects the steep logistics expenses required to move fresh stock into southern urban distribution centers

Broiler Market Prices

down trend is equally visible in commercial broiler farm gate prices which settled at approximately ₹160/kg, leading to a multi-tiered pricing grid across India:

The Urban Market Spread:

• Hyderabad (₹160 Live / ₹210 Skinless / ₹220 Boneless): Hyderabad maintains highly optimized processing margins. The modest ₹10 gap between skinless and premium boneless segments indicates efficient, large-scale processing lines throughout Telangana’s supply corridors

• Bengaluru (₹175 Live / ₹215 Skinless / ₹225 Boneless): Driven by an expanding urban population and higher retail overheads, Bengaluru reports a steeper live-bird acquisition cost of ₹175/kg, forcing local distributors to apply higher premiums across all processed cuts

• Patna (The National Baseline Low): Bihar and parts of the eastern corridor report the lowest broiler rates in the country at ₹160 Live. This lower price point reflects flat regional demand and lower local labor costs for manual dressing operations

Underlying Macro-Driver: The Feed Cost Crunch coupled with Summers

The primary force driving these structural price movements is a severe heat wave across key consumption markets and exacerbated by higher feed prices. Animal nutrition parameters confirm that feed formulations—primarily composed of corn (maize) and soybeans—now account for an unprecedented 75% to 80% of total poultry production expenses.


• Soymeal Shock: Poultry sectors are reeling from a massive 25% year-over-year surge in soybean meal prices, which jumped from $0.59/kg to $0.74/kg over a short 30-day window. This volatility has triggered a domino effect, driving up the costs of corn and de-oiled rice bran (DORB)

• Seasonal Supply Drop: Compounding these high ingredient costs, severe pre-monsoon heat waves pushing past 40°C have triggered a drop in layer-hen productivity. The combination of expensive feed and heat-induced supply drops and demand destruction are keeping prices suppressed across India

Indian Poultry & Egg Market – Farmgate Prices; 20th of May 2026

Price Outlook 

The mid-May chicken eggs and broiler meat prices highlights an industry operating under tight structural margins. NECC prices are barely covering the operating costs for a vast majority of small and mid-size poultry farmers. Until soybean meal and corn prices ease and monsoon rains set over India, cooling down temperatures, poultry farmers expect depressed price levels throughout the summer season.