The biggest issue is maize, one of the most important ingredients used in poultry feed.
India’s growing ethanol programme has increased demand for maize from distilleries. Industry estimates cited in recent reports suggest that roughly 37% of India’s maize production is now being used for ethanol production.
This has created greater competition for the crop between the fuel and poultry sectors. Parliament data cited in recent reporting puts India’s maize production at around 43.4 million tonnes, with nearly 17 million tonnes being used for ethanol.
For poultry farmers, this matters because maize is a major part of the feed bill. Industry estimates place maize at roughly 65-70% of poultry production costs. When maize becomes expensive, the impact is quickly felt across the poultry sector.
Maize prices have climbed to around Rs 26,500 per tonne, compared with roughly Rs 14,000 three years ago. They have also risen by nearly 20% over the past five months, according to recent industry reporting.