India is now the world’s second-largest egg producer and among the largest producers of broiler meat. The sector turns over roughly ₹2.7 lakh crore a year, accounts for about 16 per cent of livestock output, and supports close to five million livelihoods.

For a business that began as a rural side activity, it has become one of the fastest-compounding parts of Indian agriculture — poultry’s share of agriculture and allied output has climbed from 2.9 per cent in 2011–12 to 5.0 per cent in 2023–24.

A record price season
The headline numbers are strong. On 5 September, the National Egg Coordination Committee’s average declared rate stood at ₹5.64 per egg across 34 markets, ranging from ₹4.90 in Hospet to ₹6.20 in Kolkata. Delhi was quoted at ₹6.00, Barwala at ₹5.43 and Ludhiana at ₹5.48. That is a comfortable band for layer farms that were selling below ₹5 through much of last year.

Broilers have swung harder. Farm-gate live bird prices in the Delhi region touched ₹140 a kilogram in July against roughly ₹90 a year earlier, while retail chicken moved from about ₹240 to nearly ₹300 a kilogram. Prices have since cooled as the monsoon supply cycle normalised — north Indian integrators were quoting live bird in the mid-₹90s per kilogram in late August — but the annual average is still tracking well above FY25. Care Edge Ratings estimates broiler realisations recovered about 5 per cent year on year in FY26, with live bird averaging ₹99 a kilogram in February–March 2026, more than 20 per cent above the bird-flu-depressed fourth quarter of Fy25.
Data Box 1 · Necc Egg Rates, 5 September 2026 (₹ Per Egg)

Why the margin is not where the price is
Feed accounts for 65 to 70 per cent of the cost of producing a broiler and roughly 68 to 70 per cent of the cost of producing an egg. In a business with that cost structure, a 15 per cent move in feed wipes out a 10 per cent move in output prices. That is precisely what has happened this year.

Compound poultry feed is now selling at about ₹4,400 a quintal against roughly ₹3,600 a year ago. Maize, the energy backbone of the ration, has moved from ₹18–19 a kilogram in April to ₹27–28 a kilogram. Soybean is ruling near ₹6,900 a quintal, well above the ₹5,708 minimum support price for the 2026–27 season.

Data Box 2 · The Cost Side

Two structural forces are behind the maize spike. First, ethanol. Grain-based distilleries have become a large, price-insensitive buyer of maize, and poultry feed mills are now bidding against a sector backed by a national blending mandate. Nearly 60 per cent of India’s maize output already goes to livestock, with poultry alone accounting for roughly 47 per cent of livestock maize consumption. Second, soybean meal. India is short by an estimated 1.5 million tonnes ahead of the new crop, and soybean acreage this kharif is down 4.5 per cent year on year at 10.6 million hectares.

“India is short an estimated 1.5 million tonnes of soybean meal before the new crop arrives — and soybean acreage this season is down 4.5 per cent.”

The policy knot: imports, GM corn and a farm lobby
The livestock and feed industry have asked the Centre to permit imports of about 1.5 million tonnes of soybean meal to bridge the gap. The soybean processing industry has opposed the move, arguing that domestic supply is adequate and that imports would discourage farmers from expanding oilseed acreage. It is a familiar standoff: the same protein deficit, the same two lobbies, a different year.

Poultry industry representatives have also pressed for approval of genetically modified corn, on the argument that higher-yielding maize would give both the feed and ethanol industries cheaper raw material. Under this year’s trade arrangement with the United States, India retained protection on corn and soybean — both predominantly GM crops there — while agreeing to allow imports of distillers’ dried grains and red sorghum for animal feed. That is a partial valve, not a solution. DDGS can replace part of the energy component of a ration; it cannot replace the protein that soybean meal supplies.

For business readers, the policy question is simple to state and hard to settle: India cannot simultaneously run an aggressive ethanol programme, protect oilseed growers from imports, and supply a poultry sector growing at 7 to 8 per cent a year with cheap feed. Something has to give, and so far, the adjustment has been borne by poultry farmers and, downstream, by consumers.

Volumes keep climbing anywayRemarkably, none of this has slowed production. India produced 149.11 billion eggs in 2024–25, second only to China, with commercial farms accounting for about 84.5 per cent of output and backyard poultry the rest. CareEdge estimates egg output at around 155 billion in FY26, rising to roughly 163 billion in FY27, with total meat production moving from about 11 million tonnes to 12 million tonnes over the same period.

Data Box 3 · Production Trajectory

Poultry India puts broiler production growth at 6 to 7 per cent a year for 2026–27, concentrated in Andhra Pradesh, Tamil Nadu and Telangana, with the layer segment expanding more moderately on the back of productivity per bird, automation and value-added products. Andhra Pradesh alone accounts for 18.4 per cent of national egg output, Tamil Nadu 15.6 per cent and Telangana 13.0 per cent; the top five states together produce 64.4 per cent of India’s eggs.

Exports remain a modest but real business. India shipped poultry products worth USD 317.79 million in FY26, with the UAE, Oman, Maldives, Indonesia and Japan the leading destinations. Against a sector of roughly USD 31 billion, exports are still a rounding error — which is itself the opportunity, constrained mainly by disease-free-zone certification and processing infrastructure.

The demand headroom argument
The most persuasive case for investing in Indian poultry is not this year’s price cycle. It is the consumption gap. Per capita egg availability is around 100 to 105 eggs a year against the National Institute of Nutrition’s recommended 180. Per capita chicken consumption is roughly 5 kg a year against a global average close to 17.5 kg. Industry estimates suggest that a one-kilogram rise in per-person chicken consumption would add about 1.43 million tonnes of annual demand.

That headroom is being converted by three commercial forces rather than by policy: quick-service restaurants, organised retail, and the shift from live-bird wet markets to chilled and frozen products. Vertically integrated producers — who own the hatchery, the feed mill, the contract farms and increasingly the processing plant — have been the main beneficiaries, because integration is what buffers a business against the feed-price whiplash described above.
The value-of-output data makes the compounding visible. Poultry meat and eggs generated about ₹56,200 crore of output in 2011–12. By 2023–24 that figure was ₹2.67 lakh crore — a growth rate of 9.3 per cent a year for meat and 6.1 per cent for eggs, against 5.3 per cent for milk and 2.1 per cent for cereals.

“Poultry’s share of agriculture and allied output has risen from 2.9 per cent to 5.0 per cent in twelve years. Few segments of Indian agriculture have compounded faster.”

The recurring tax: disease and weather
Avian influenza remains the sector’s single largest tail risk, and 2026 has been an active year. India reported eleven H5N1 outbreaks on farms in Kerala in December, killing roughly 54,100 birds. In February, about 6,000 birds were culled at a research centre in Patna, with movement restrictions imposed across a nine-kilometre surveillance zone. In March, more than 22,000 birds were culled in Bilaspur district of Chhattisgarh, and in April Karnataka reported its first case of the year at a farm near Bengaluru.

The direct culling loss is rarely the biggest cost. The bigger hit is the demand shock: consumers step away from chicken for several weeks after every widely reported outbreak, and prices in unaffected states fall alongside those in affected ones. Q4 FY25 was a textbook case, and the strong February–March 2026 realisations look impressive partly because they are measured against that depressed base.

Weather has compounded the problem this season. A prolonged heat wave followed by a delayed and unevenly distributed monsoon raised bird mortality and cut egg production in several states, adding to the cost per marketable bird. For layer units, higher mortality in an inflated-feed environment is a double penalty: the feed has already been consumed before the bird is lost.

The industry’s answer, so far, is largely defensive — stronger vaccination protocols, farm-level biosecurity training and surveillance, alongside a push for indigenous vaccine development that would reduce cost for small and mid-sized farms.

What the ratings agencies see
For all the noise, the credit view is constructive. CareEdge describes FY26 as a year of stabilised operating performance — healthy production growth, resilient demand across retail, institutional and food-service channels, improved supply-demand balance and a recovery in profitability with a strong finish in the fourth quarter. Its FY27 outlook for the sector is stable.
The distinction worth drawing is between the organised and unorganised halves of the industry. Integrators with feed-buying scale, forward contracts and processing margins have ridden the cost cycle. Independent broiler and layer farmers, who buy feed at spot and sell birds at spot, have absorbed it. That gap is quietly accelerating consolidation — the most consequential structural trend in the sector right now, and one that will show up over the next few years in contract-farming penetration and in capital-market activity among the larger integrators.

Public support remains focused on the entrepreneurial end. The National Livestock Mission continues to offer a 50 per cent capital subsidy for parent farms, rural hatcheries and brooder-cum-mother units, aimed at small and rural producers rather than at large integrators. It builds capacity; it does not address the feed-price problem that is currently setting margins.

What to watch for the rest of FY27
• The soymeal decision. Whether the Centre permits the 1.5 million tonne import the livestock industry has requested is the single biggest swing factor for margins this year.
• New-crop maize and soybean arrivals. A good kharif arrival could pull feed back toward ₹4,000 a quintal; a poor one locks in current costs through the festive season.
• Ethanol demand for maize. The structural competitor for feed grain is not going away and will keep a floor under maize prices.
• Winter avian influenza. Outbreak seasonality peaks between December and March. Watch for demand shocks rather than culling losses.
• Festive and winter demand. Egg consumption typically strengthens from October, which should support NECC rates even if feed stays elevated.
• Consolidation and capital. Cost pressure is a filter. Expect more contract farming, more integration, and more interest in the sector from public and private capital.

“The bottom line for anyone with capital in this business: India’s poultry demand story is intact and structurally under-served, but 2026 has demonstrated that returns in this sector are set on the input side, not the output side. The operators who will do well over the next eighteen months are not the ones betting on higher chicken prices. They are the ones who have solved for feed.”

References are available on request.

Dr. Partha P. Biswas, Former Associate Professor & HoD,

Because more poultry meat and eggs are being produced worldwide, people are asking for better, more sustainable ways to farm. This means finding new and better ways to feed animals in the future. From 2000 to 2020, global egg production went up by more than 41%, increasing from 51 million to 87 million tonnes, with an average annual growth rate of 3%.In 2023, poultry meat production hit 145 million tonnes and is still rising. With 6.29 million tonnes produced in 2020, India is fast approaching the level of production in the USA (6.29 million tonnes) produced in 2020. With an average egg size slightly lower than that in the USA (average weight of a standard large chicken egg 56.7 grams (2 oz) in the USA as against 50 to 55 grams in India), the Indian egg sector estimated that they have already overtaken the USA in terms of the number of eggs produced. India produced 149.11 billion eggs in the 2024–25 period, while the United States produced approximately 105 billion eggs in 2025. This growth is making it more important to find sustainable ways to feed animals.Even though raising poultry is less harmful to the environment compared to other types of animal farming, it still has some negative effects, such as increasing global warming, making water too rich in nutrients (eutrophication), and making soil too acidic. Low-carbon poultry feed is now moving from just an idea to real, practical use. Feed is responsible for about 70% of the total carbon footprint in poultry farming, so it’s the biggest area where we can cut down on carbon emissions. To make poultry farming more sustainable, we need to change how we get, mix, and use feed. Soybean meal and fishmeal have been the main sources of protein for animals, used in everything from chicken farming to fish farming. But keeping on using them at the same levels is bad for the environment. The reason we’re looking for alternatives isn’t because these materials don’t work well for animals—they are very effective. It’s because they cause serious environmental and economic problems, especially for systems that try to be sustainable and manage fish resources properly.

CIRCULAR AND ALTERNATIVE INGREDIENTS
Producers are actively moving away from relying entirely on conventional corn and deforestation-linked soy. Feed formulations are increasingly incorporating agro-industrial by-products, former foodstuffs (circular feed), and alternative protein crops like rapeseed and peas.
Life Cycle Assessments show that feeds formulated with these by-products can have a carbon footprint nearly 40% lower than traditional raw material feeds.

THE “BIG THREE INGREDIENTS” OF POULTRY FEED
Poultry sector consumes ~60% of India’s maize (~20+ million tonnes annually).Soybean meal demand: ~6-7 million tonnes domestically. In commercial broiler and layer operations, dry fish meal is rarely used When added at strategic levels, typically 3-8% in starter feeds and 2-5% in grower phases, fish meal enhances palatability, encouraging birds to consume more feed during critical early stages. This increased intake, paired with high digestibility, results in superior weight gains and improved FCR. In the layer segment, specialized demand exists for producing enriched eggs. The long-chain n-3 fatty acids (like DHA) in marine lipids transfer efficiently into the yolk.

1. SOYBEAN MEAL (THE PROTEIN BASE) : Soybean meal is the main source of protein in chicken feed around the world, but it has a big impact on the environment. The protein in soybean meal is high in lysine, which is first limiting amino acid in most chicken diets. This makes it a great match for grains like corn and wheat. India does not allow growing or bringing in raw genetically modified (GM)soybeans or seeds. India’s soybean production fell a lot during the 2025-2026 growing season, reaching about 11 to 12.7 million tons, which is much lower than before, causing a serious shortage of supply. When there are not enough non-GM soybeans locally, they get them from certain African countries. Non-GM soybeans are more expensive than GM ones. Even though GM soybean meal has been allowed sometimes to meet the protein needs for animal feed, there are worries about the effects on the environment. These worries include carbon emissions from cutting down forests in important areas like the Amazon and Cerrado, more risks for climate change, loss of wildlife, and pollution from farm chemicals running into water.

2.CORN / MAIZE (THE ENERGY SOURCE) : Corn provides the bulk energy in most poultry diets. While corn generally has a lower carbon footprint per kilogram than soy, birds eat much more of it. The primary carbon issue with corn is its heavy reliance on synthetic nitrogen fertilizers. Manufacturing these fertilizers is extremely energy-intensive, and applying them to fields releases nitrous oxide (N₂O),a green house gas nearly 300 times more potent than carbon dioxide. Tractor fuel for plowing is another important issue.

3.FISH MEAL (THE SPECIALITY PROTEIN) : Though used in far smaller amounts (typically for young chicks or breeder birds), fish meal has a complex environmental footprint. The issue of TMA accumulation leading to a fishy flavor in brown-shelled eggs arises from a genetic defect in up to 10% of brown-feathered hens. Normally, TMA is oxidized in the liver into a harmless compound by the action of the enzyme trimethylamine oxidase. The synthesis of this enzyme depends on the expression of the FM03 gene, located on chromosome 8. In the case of anon-synonymous mutation in the FM03 gene (designated T3295),hens cannot oxidize TMA, which then accumulates in the yolk. Poultry diets restrict fish meal to 5-10% of total feed due to ecological inefficiencies. Fishmeal is sourced from small forage fish like anchovies and sardines, which are crucial to the marine food web. Overfishing these species endangers higher trophic levels, leading to decline predatory fish, marine mammals, and seabirds.Moreover, forage fish populations are vulnerable to climate change, causing unstable fishmeal supplies and significant price volatility.India is the third-largest producer and exporter of fishmeal. Fig.1:

Fig.1: Typical poultry feed mix

ECONOMIC HURDLES TO TRANSITION OF CIRCULAR PROTEINS
The transition to circular proteins, such as microbial biomass, insect meal, or fermented agro-industrial waste, is essential for stabilizing ecosystems and is crucial for a sustainable livestock industry. However, commercial feed mills face significant economic barriers due to scale, commodity pricing, and supply chain maturity, making it challenging to replace traditional soybean meal. Here are the primary economic hurdles commercial mills face today:

THE PRICE PARITY GAP
Decades of agricultural subsidies, optimized supply chains, and massive economies of scale keep their prices relatively low and stable (historically ranging from $600-$750 per ton for soy, and $1,500 to $2,000 for fishmeal). In contrast, alternative proteins like Black Soldier Fly Larvae (BSFL) or microalgae carry immense initial capital expenditures (CapEx) to build high-tech bio-manufacturing or fermentation facilities.
Although insects like Black Soldier Fly Larvae (BSFL) raised on organic waste represent the ultimate circular protein, converting low-value biomass into high-value feed with a minimal land and water footprint. BSFL defatted protein meal and de-oiled powder generally trade between ₹110 and ₹250 per kg in Indian market & wholesale price roughly between $1,320 and $3,000 USD per ton.

SCALE AND VOLUME CONSISTENCY
Commercial feed mills produce feed continuously, requiring tens of thousands of tons of standardized ingredients every single month. Currently, very few alternative protein manufacturers can guarantee that volume without interruption. If a mill alters its highly specific formulation to include 5% insect meal, and the supplier falls short on delivery, the mill has to halt production, re-calibrate its software, and reformulate the diet using different ingredients. This downtime is extraordinarily expensive.

HIDDEN COSTS OF NUTRITIONAL REBALANCING
Soybean meal and fishmeal are highly dependable. Nutritionists have a clear understanding of how these ingredients function within the digestive systems of fish and birds. When a mill uses insect meal or a plant-based alternative to fishmeal, the amino acid profile changes. As a result, the mill needs to purchase additional synthetic amino acids, such as L-methionine or L-lysine, along with specific feed enzymes to compensate for the missing nutrients. This helps maintain the animals’ growth rates. Even if the base alternative protein is priced competitively, these added ingredients increase the overall cost of the final feed formulation.

RETROFITTING MILL INFRASTRUCTURE
Feed mills are designed to handle, grind, and pellet traditional grains and meals. However, alternative ingredients often have very different physical properties. For instance, some insect meals contain significantly more fat than solvent-extracted soybean meal. High levels of lipids can cause blockages in extruders, reduce the quality of feed pellets (making them prone to breaking during transport), and damage machinery. To effectively use these new ingredients at high levels, mills usually need to invest heavily in upgrading their equipment, such as adding new vacuum liquid-coating systems for fats. Many mills are reluctant to make these costly investments due to financial concerns.

REGULATORY APPROVAL COSTS
The global feed industry has strict rules to stop harmful substances from getting into the food chain. To get approval for a new type of protein, like microbial biomass or insect protein, used in animal feed, companies must do many expensive and time-consuming tests. These tests check for safety, look for heavy metals, and measure how well the protein is digested. This process can take many years.The cost of these tests ends up being passed on to the feed producers, which raises the cost of the ingredients. Unless these alternative proteins can be made in large amounts and sold at prices that are as good as soy or wild-caught fish, they are probably only used in special, high-end, or environmentally friendly feed products, not in regular, mass-produced feeds..Fig.2:

Fig.2: A picture showing how to raise chickens in a way that is good for the environment, people, and the poultry industry. It shows how being efficient with resources, taking care of the chickens’ health and happiness, keeping the farm safe from disease, making sure the chickens are productive, and making the whole food system strong and able to handle challenges are all connected and important.

THE GLOBAL RACE TO DECARBONIZE LIVESTOCK DIET

CIRCULAR INGREDIENTS & CARBON REDUCTION
Upcycling Waste: Using agricultural and slaughterhouse by-products (like DDGS, fruit pomace, and rendered fats) reduces reliance on land-intensive virgin crops and prevents landfill methane. The sustainable use of fruit and vegetable residues (FVRs) in poultry feed formulations has gained considerable attention due to their potential in advancing animal health However, certain challenge such as anti-nutritional factors, palatability issues, and processing techniques are also associated while incorporating these residues into poultry diets. Fermentation technologies create new opportunities to recover nutrients from agricultural residues and improve their value in poultry diets.

Carbon-Optimized Formulation: Modern feed software integrates Life Cycle Assessment (LCA) data to dynamically select ingredients based on their carbon footprint, not just cost and nutrition. LCA is a measurement of the emissions generated during its cultivation, processing, and transport. The software can calculate the exact environmental cost of using raw protein crops (like soy) versus supplementing with synthetic amino acids. It optimizes the diet to prevent protein overfeeding, which simultaneously lowers the feed’s initial GWP (Global Warming Potential) and reduces the nitrogen output (and offensive odors) in the poultry droppings.

THE SHIFT TO DDGS (DISTILLERS DRIED GRAINS WITH SOLUBLES)

Cost Advantage: Maize-based DDGS (₹17-₹20/kg) is significantly cheaper than soymeal (~₹40/kg), driving rapid adoption in the poultry industry.
Substitution Limits: DDGS can replace 25-30% of maize demand. Insect protein and algae can replace small portions of soy (5-10%).
Ongoing Conventional Reliance: Despite these alternatives, conventional ingredients will still make up 60-70% of overall feed requirements.
PRECISION NUTRITION
Targeted Diets: Formulating feed to match exact amino acid and energy needs improves the Feed Conversion Ratio (FCR).
Lower Emissions: Preventing protein overfeeding reduces nitrogen in manure, which directly lowers harmful nitrous oxide (N₂O) emissions downstream. Fig.3

Fig.3: Alternative protein sources for animal feed in a circular bioeconomy could include things like leftover materials from farming and food processing, meals made from insects and worms, leftovers from biorefineries, proteins made by microbes, and by-products from aquatic sources.

BETWEEN REALITY AND RHETORIC: LOW-CARBON POULTRY FEED
Moving from using a wide variety of ingredients in poultry feed to providing exactly what the birds need at each stage of growth is key to creating real low-carbon feed. While some talk about replacing soy with new ingredients, the actual science is about making tiny, precise changes. It’s about giving birds exactly the right nutrients they need, in the right amounts, so nothing is wasted. Real reductions in carbon emissions from poultry feed don’t come from using popular or fashionable ingredients. They come from making sure every part of the feed works as efficiently as possible. Ensuring every gram of feed is used well is the best way a farm can help the environment. Instead of providing too much crude protein, experts can use specific synthetic amino acids like L-Methionine, L-Lysine, and L-Threonine.This helps reduce the total amount of crude protein in the birds’ diets. By cutting crude protein by just 1.5%, farms can lower their carbon footprint by about 70 kg of CO₂ equivalent per ton.

CONCLUSION
Despite having significant potential, incorporating insects, algae, fermented products, and agricultural and industrial by-products into chicken feed continues to face multiple challenges. These challenges include scientific, technical, economic, and legal difficulties. For insects, key issues include variability in their nutritional content based on their diet, high chitin content that complicates protein digestion for chickens, higher production costs compared to traditional protein sources, and the absence of established international safety and quality standards. Consumer acceptance of chicken products derived from insect-based diets remains uncertain, which may hinder large-scale adoption. The effort to reduce the carbon footprint in chicken feed presents a mix of real benefits and exaggerated claims. While some measurable progress is achievable, the extent and impact of these improvements often fall short of what companies assert. Reducing the carbon footprint in chicken feed is neither a complete solution nor a total myth; it represents incremental steps within a broader system that is not sustainable. The true advantages come from the following areas:

– Integrating a circular bioeconomy into feed production
– Minimizing reliance on imported protein
– Utilizing waste materials effectively
– Developing better alternative ingredients

The industry must shift from making grand promises to achieving tangible improvements. This involves recognizing and celebrating small achievements, such as 5-10% reductions, while also being honest about limitations and working towards broader changes that extend beyond mere feed modifications. This conclusion reflects both the actual progress being made and the gap between marketing claims and real-world outcomes, offering a balanced assessment of the industry’s current position regarding sustainable feed promises. Hybrid feeding systems that combine commercial and alternative feed sources generally provide the most consistent results, although maintaining mineral balance is essential during the laying phase.

REFERENCES
1.Vincent Guyonnet (2025) : Chapter 2 World Egg Production and Marketing Trends, In book: Handbook of egg science and technology (pp.9-26) Publisher: CRC Press. DOI:10.1201/9781003254430-3.
2.Hairui Yu et al (2025): Sustainable poultry farming: mitigation of greenhouse gas emissions in poultry farming through nutritional and environmental modulations. World’s Poultry Science JournalVolume 81, 2025 – Issue 4: Pages 1081-1141.
3.Dheeraj Kumar et al (2025): Alternative feed ingredients in poultry diets: A review of nutritional potential, processing technologies, and challenges. International Journal of Veterinary Sciences and Animal Husbandry 2025; SP-10(9): 16-19.
4.Yadi Oktariansyah*& Mustafa Kamal (2026): Alternative Feed Use in Poultry Chickens: Impacts on Feed Efficiency and Physiological Parameters—A Systematic Literature Review. Journal of Natural Sciences ISSN 2721-5571 (Online) Vol.7, No.1 March 2026: 41-53.

In this exclusive interaction with Mr. Ricky Thaper discusses the critical issues shaping India’s poultry sector, including feed security, ethanol mandates, regulatory reforms, import policies, and sustainable strategies for future growth and competitiveness.

Poultry Creations: With the rapid modernization of India’s poultry sector, how do you foresee domestic feed-grain demand evolving in direct competition with ethanol mandates?

Ricky Thaper: At present, the Indian poultry industry, which has seen 7% to 8% annual growth in the last decade is valued at over $ 30 billion. The industry has transformed itself from following conventional farming practices to a modern commercial production system. However sustained supply of feed ingredients remains a key challenge. Poultry feed mostly consist of Maize (corn) 50-55% and Soybean Meal 20-25% and rest other feed ingredients and feed additives & nutrients.

Stating that there has been increasing diversion of maize towards industrial use and ethanol production, Confederation of Indian Industry (CII) in the vision document for poultry sector in 2047 had also stated “the current growth level of maize and soybean production in the country will be insufficient to meet the demand of the poultry industry.” The CII has urged the government to allow imports of genetically modified (GM) maize and soybean because of ‘unprecedented increase’ in feed prices.

The demand supply situation has entered a new phase especially maize, a key ingredient, has become India’s single-largest feedstock for ethanol. With growing demand for maize following the government’s future plans to expand ethanol blending program, may result in lesser supplies for poultry, dairy and aqua feed.

Poultry Creations: What regulatory alignments are most critical right now to ensure stable, cost-effective grain supplies for the growing poultry and livestock industry?

Ricky Thaper: To meet the growing needs of the livestock feed, the government needs to have an open import policy for sourcing maize and soybean meal from the various countries, irrespective of whether the crops are GM variants or not. With the competing demand from ethanol, starch and other sectors, feed ingredients imports should be open without any restrictions. In August, 2021, the government had relaxed import rules to allow the first shipment of 1.2 million ton of genetically modified (GM) soybean meal to support the domestic poultry industry after a record spike in feed prices. Poultry industry has urged the Government repeatedly to allow both import and cultivation of GM maize and soybeans to fulfil the requirement of these two major feed ingredients in the coming years. The sustainable supplies of feed in coming years would be crucial for the growth of the poultry industry.
Currently annual animal feed production is estimated close to 56 million tons which includes dairy feed 16.5 million tons, aqua feed 2.5 million tons and poultry feed 37 million tons. The feed ingredients are mostly maize and soybean meal About 60-65% of the output of maize is used as poultry and livestock feed while rest is used for industrial use.

In the 2025-26 crop year (July-June), the agriculture ministry has estimated maize production at 52 million tons while output estimate by trade is around 48 million tons. As per industry estimate, poultry industry used around 26 million tons of maize in feed while around 5.5 million tons used for dairy feed while around 6 million tons was used by starch industry and only 1.5 MT is used for human consumption. 1 million tons in alcohol and about 1 million tons in seed and wastage. Balance 8-10 MT of maize was diverted for ethanol production.

Poultry Creations: How can corporate agribusiness interests and national trade policies better synchronize to protect poultry margins during periods of commodity price spikes?

Ricky Thaper: The poultry sector is a vital sector of the livestock industry which provides employment to over 6 million people. While industry is witnessing a steady pace, sustainable feed supplies at reasonable prices would be crucial for the growth of the sector as feed prices constitute over 65% to 70% of the cost of production. Any increase in feed prices hit the margins of poultry farmers. The government has been focussing on growth of agriculture and allied sectors. There are several industries which require maize at their key raw material so the government should focus on. The current growth level of maize production in the country will be insufficient to meet the demand of the poultry industry in coming years.
The soybean production cycle in India for the year 2025–26 has seen a notable downturn compared to the 2024–25 season. As per the data from the Ministry of Agriculture & Farmers Welfare (MoA & FW) or the Soybean Processors Association of India (SOPA), the consensus is clear: production fell sharply due to a combination of lower acreage, extreme weather and falling yields.

Government Estimate is 12.60 Million Tons and the Industry Estimate (SOPA Ground Survey) | is11.03 Million Tons The Government numbers track total theoretical agricultural output, while SOPA’s numbers heavily filter for commercial availability, market arrivals and clean seed weight available to crushing mills.

Three main factors compressed the 2025–26 harvest compared to the previous year:
1. Reduced Cultivation Acreage – Farmers actively shifted some of their land away from soy due to weaker market-yard prices observed mid-2025, from 118.31 Lakh Hectares (2024–25 Acreage) to 112.14 Lakh Hectares (2025–26 Acreage), a decline of roughly 5.2%

2. Depressed Yields per Hectare – Climate abnormalities took a heavy toll on the plants during critical growth phases. The national average crop yield dropped from 1,089 kg per hectare in 2024–25 down to 983 kg per hectare in 2025–26.

3. Weather Anomalies and Crop Disease – Excessive & Uneven Rains: The monsoon brought flash water-logging in low-lying areas during the initial phase, causing localized washouts that required re-sowing. Later, prolonged heavy rains during the critical harvesting time damaged crop quality, yielding smaller grain sizes and higher moisture content. Pest Pressures: Key growing belts saw infestations of Yellow Mosaic Virus and aerial blight, which severely stunted pod development.

Because total commercial availability for crushing fell dramatically to10.40 Million Tons (compared to over 12.32 Million Tons in 2024–25), the domestic crushing industry has faced severe supply shortages. This raw material deficit is the primary driver behind the rocketing local meal prices and the collapse of the export trade.

Another major challenging area is the dried distillers’ grains with soluble (DDGS) from maize, a key by-product of ethanol production, are not of desired quality for feed and the toxins levels are high. The challenge is that this toxin affected DDGS when used in feed will set into food chain.

Poultry Creations: What sustainable growth models are proving successful in insulating the Indian poultry sector from global supply chain shocks?

Ricky Thaper: The poultry industry, like other agriculture sectors, is subject to the supply and demand scenario, market structures and Government policies. An open import policy on animal feed ingredient would go a long way meeting the demand of livestock and poultry feed. Several south Asian countries including Pakistan, Bangladesh, Nepal and Sri Lanka have allowed imports of GM Maize and GM soybean / soymeal. The GM soybean / soybean meal and Maize imports should be allowed with a fixed quota during off or non-harvesting season here so that it does not adversely impact the farmers’ price realisation. Reduction in import duties on these feed ingredients in the poultry feed should be announced soon.

As the demand and supply gap between consumption and production of feed grows, liberalised imports of soybean meal and maize would mitigate the problems and keep the prices under check. With the competing sector demanding maize supplies, liberalising policy on import is of paramount importance for sustainable growth of the poultry sector which is growing at a steady pace with the rising demand of protein enriched food.

Introduction
The poultry industry is one of the fastest-growing segments of global agriculture and plays a crucial role in ensuring food security, nutritional sustainability, and rural livelihoods. Poultry meat and eggs are among the most affordable and widely consumed sources of high-quality animal protein. However, the economic sustainability of poultry farming is increasingly threatened by rising feed costs, which account for nearly 65–75% of total production expenditure in commercial poultry enterprises. Among feed ingredients, soybean meal (SBM) constitutes the primary protein source because of its superior amino acid profile, high digestibility, and consistent nutrient availability. Nevertheless, volatility in soybean prices due to climate change, global trade disruptions, geopolitical conflicts, biofuel competition, transportation costs, and fluctuating international commodity markets has significantly increased production costs in poultry farming. The dependence on imported soybean meal in many developing countries, including India, further exposes poultry producers to supply chain uncertainties and foreign exchange fluctuations. Consequently, poultry nutritionists and farm managers are actively exploring alternative protein sources and innovative farm management strategies to reduce feed costs while maintaining productivity, flock health, and profitability. Simultaneously, advances in precision poultry farming, digital technologies, environmental control systems, and feed efficiency optimization are transforming poultry production into a more data-driven and economically resilient enterprise. The integration of nutritionally viable soymeal alternatives with smart farm management practices offers a promising pathway toward sustainable poultry production under conditions of escalating feed prices.

Importance of Soybean Meal in Poultry Nutrition
Soybean meal has long been regarded as the benchmark protein ingredient in poultry diets because of its excellent nutritional characteristics. Typically containing 44–48% crude protein, soybean meal provides an ideal balance of essential amino acids, particularly lysine, which is often limiting in cereal-based diets. Its high digestibility, palatability, and relatively low fibre content make it highly suitable for broilers, layers, breeders, and turkeys.
In broiler nutrition, soybean meal supports rapid muscle development, efficient feed conversion, and improved carcass quality. In layer production, it contributes to enhanced egg production, egg mass, and shell quality. Furthermore, soybean meal contains beneficial bioactive compounds and functional peptides that positively influence gut health and immune responses.

Despite these advantages, excessive dependence on soybean meal has created several challenges for the poultry industry. Global soybean production is concentrated in a limited number of countries, making supply chains vulnerable to climatic events, geopolitical instability, and export restrictions. Additionally, soybean cultivation has been associated with deforestation, biodiversity loss, and environmental concerns, especially in South America. Increasing competition between feed, food, and biofuel sectors has also intensified pressure on soybean availability and pricing.

As feed costs continue to rise, the poultry industry is increasingly compelled to diversify protein sources and adopt more economically sustainable feeding strategies.

Economic Consequences of Rising Feed Cost in Poultry Production
Feed cost inflation directly reduces profit margins in poultry enterprises. Since poultry production operates on relatively narrow economic margins, even modest increases in feed prices can significantly affect profitability. Broiler production is particularly sensitive because of short production cycles and high feed consumption rates. Similarly, in layer operations, prolonged periods of elevated feed prices may substantially reduce returns over feed cost.

Rising feed costs result in several economic consequences:
– Increased cost per kilogram of live weight gain.
– Reduced feed conversion efficiency under poor-quality diets.
– Decline in egg production profitability.
– Increased market price of poultry products.
– Reduced competitiveness of small-scale producers.
– Lower farm expansion and investment capacity.

In many regions, feed manufacturers and poultry producers respond by reformulating diets with lower-cost ingredients. However, indiscriminate replacement of soybean meal without proper nutritional balancing may impair growth performance, immunity, carcass quality, and reproductive efficiency. Therefore, economically sustainable poultry production requires a scientific approach that combines alternative feed ingredients with precision nutritional management.

Oilseed Meals as Alternatives to Soybean Meal
Oilseed by-products are among the most practical alternatives to soybean meal in poultry feeding systems. Several oilseed meals possess substantial protein content and can partially replace soybean meal when diets are appropriately formulated.

Canola Meal
Canola meal contains approximately 35–40% crude protein and is rich in sulphur-containing amino acids. It can effectively replace part of soybean meal in broiler and layer diets. However, its higher fibre content and presence of glucosinolates may limit inclusion levels.

Sunflower Meal
Sunflower meal is another important protein source with good methionine content. Dehulled sunflower meal possesses improved nutrient density and can be used efficiently in poultry rations. Enzyme supplementation enhances its digestibility.

Cottonseed Meal
Cottonseed meal provides substantial protein but contains gossypol, a toxic pigment that restricts its inclusion in poultry diets. Proper processing and iron supplementation may reduce toxicity concerns.

Groundnut Cake
Groundnut cake is widely used in India and other Asian countries because of its local availability and moderate protein content. However, aflatoxin contamination remains a major concern requiring strict quality control measures.

Sesame and Linseed Cakes
These oilseed cakes provide supplementary protein and beneficial fatty acids, although their use is often limited by fibre content and anti-nutritional factors. Oilseed meals can substantially reduce feed costs when incorporated scientifically with amino acid balancing and enzyme supplementation.

Use of Legume Grains in Poultry Feeding
Legume grains are gaining popularity as sustainable and locally available protein alternatives in poultry nutrition. Commonly used legumes include peas, lupins, chickpeas, pigeon pea, and faba beans.
Nutritional Advantages
– Moderate to high protein content.
– Good starch availability.
– Reduced dependence on imported soybean meal.
– Nitrogen fixation benefits in agriculture.
– Lower environmental footprint.

Constraints
– Presence of tannins, trypsin inhibitors, lectins, and non-starch polysaccharides.
– Lower methionine content compared to soybean meal.
– Variability in nutrient composition.

Modern processing technologies such as extrusion, roasting, soaking, dehulling, and fermentation help reduce anti-nutritional factors and improve nutrient utilization. In broiler diets, partial replacement of soybean meal with processed legumes has demonstrated satisfactory growth performance and feed efficiency.
The use of locally cultivated legumes can also strengthen regional feed security and reduce transportation-related costs.

Distillers Dried Grains and Agro-Industrial By-Products
Agro-industrial by-products represent an economically valuable resource for poultry feeding. The poultry industry increasingly utilizes these ingredients within circular economy models aimed at reducing waste and improving resource efficiency.

Distillers Dried Grains with Solubles (DDGS)
DDGS is a by-product of ethanol production and contains considerable protein, fat, phosphorus, and digestible energy. It is widely used in broiler and layer diets at moderate inclusion levels.
Rice Bran
Rice bran is abundantly available in rice-producing countries and provides energy, oil, vitamins, and moderate protein. Stabilization is necessary to prevent rancidity.
Wheat Bran and Pollard
These by-products supply fibre, phosphorus, and moderate protein but are generally used at lower inclusion rates in poultry because of high fibre levels.
Brewer’s Grains
Brewer’s grains can serve as low-cost feed ingredients after proper drying and preservation.
Bakery Waste
Processed bakery waste offers a highly digestible energy source capable of partially replacing maize in poultry diets. Although agro-industrial by-products reduce feed costs, variability in nutrient composition necessitates routine laboratory analysis and quality assurance.

Insect Meal as a Novel Protein Source
Insect meal has emerged as a highly promising alternative protein source for poultry production. Black soldier fly larvae meal, mealworm meal, and housefly larvae meal possess high crude protein levels and favourable amino acid profiles.

Advantages of Insect Meal
– Excellent digestibility.
– High protein concentration.
– Efficient conversion of organic waste into biomass.
– Reduced land and water use.
– Lower environmental impact compared to soybean cultivation.

Studies have shown that insect meal can partially replace soybean meal and fishmeal in broiler diets without adversely affecting growth performance or carcass quality. Some insect-derived lipids also possess antimicrobial properties that may support gut health.

However, large-scale commercialization faces several limitations:
– High production costs.
– Regulatory constraints.
– Limited industrial infrastructure.
– Consumer perception challenges.
As production technologies improve, insect meal may become increasingly competitive as a sustainable protein source for poultry feeding.

Algae, Single Cell Proteins, and Fermented Feed Ingredients
Microalgae and microbial proteins represent future-oriented feed resources with substantial potential for poultry nutrition.

Microalgae
Species such as Spirulina and Chlorella contain high-quality protein, essential fatty acids, vitamins, minerals, and pigments. In layer diets, algae supplementation enhances yolk pigmentation and antioxidant status.
Single Cell Protein (SCP)
Yeast, bacteria, and fungal biomass can provide highly digestible protein with rapid production rates and minimal land requirement.
Fermented Feed Ingredients
Fermentation improves nutrient availability and reduces anti-nutritional compounds in feed ingredients. Fermented soybean meal, fermented legumes, and probiotic-enriched feeds enhance gut health and nutrient absorption in poultry.

These technologies contribute to improved feed conversion efficiency and may reduce dependence on expensive conventional protein sources.

Precision Nutrition and Least-Cost Feed Formulation
Precision nutrition is essential for maintaining profitability during periods of feed cost escalation. Modern least-cost formulation software allows nutritionists to design diets that meet nutrient requirements at minimum cost while incorporating alternative ingredients.

Major Precision Nutrition Approaches
– Digestible amino acid formulation.
– Ideal protein concept.
– Phase feeding.
– Precision protein nutrition.
– Net energy systems.
– Use of synthetic amino acids.

The supplementation of lysine, methionine, threonine, valine, and tryptophan enables significant reduction in crude protein levels without compromising performance. Lower protein diets reduce feed cost, nitrogen excretion, and metabolic stress.

Feed enzymes such as phytase, xylanase, protease, and β-glucanase further enhance nutrient digestibility and improve utilization of unconventional feed ingredients.

Precision nutrition therefore represents a cornerstone strategy for economical poultry production under volatile feed markets.

Smart Feeding Systems and Feed Wastage Reduction
Feed wastage significantly contributes to economic losses in poultry farming. Smart feeding technologies help optimize feed distribution, minimize wastage, and improve feed efficiency.

Important Smart Feeding Technologies
– Automated feeding systems.
– Sensor-based feed dispensers.
– Precision feed allocation systems.
– Real-time feed intake monitoring.
– Smart silos and inventory systems.
Automated systems ensure uniform feed distribution and reduce labour dependency. Sensor technologies can detect abnormal feed consumption patterns, enabling early identification of health or management problems.

Proper feeder design, adjustment of feeder height, and prevention of feed spillage also play important roles in minimizing wastage. Even small reductions in feed wastage can substantially improve farm profitability during periods of high feed prices.

Environmental Control and Poultry House Management
Environmental management strongly influences feed intake, nutrient utilization, and overall poultry performance. Poor environmental conditions reduce growth rate, impair immunity, and worsen feed conversion efficiency.

Critical Environmental Factors
– Temperature.
– Humidity.
– Ventilation.
– Air quality.
– Lighting programs.
– Litter management.

Heat stress is particularly detrimental in tropical and subtropical poultry production systems. Birds exposed to high temperatures reduce feed intake, resulting in lower body weight gain and egg production.

Modern environmentally controlled poultry houses utilize:
– Tunnel ventilation.
– Evaporative cooling systems.
– Automated climate control.
– Smart sensors for temperature and humidity monitoring.
These systems help maintain optimal environmental conditions, improve bird comfort, and enhance feed efficiency.

Gut Health Management and Feed Efficiency
Maintaining optimal gut health is essential for efficient nutrient utilization and profitability in poultry production. Intestinal health directly affects digestion, absorption, immunity, and feed conversion efficiency.

Key Gut Health Strategies
– Probiotics.
– Prebiotics.
– Organic acids.
– Phytogenic feed additives.
– Enzymes.
– Competitive exclusion products.

The reduction in antibiotic growth promoter usage has increased the importance of alternative gut health management approaches. Healthy intestinal microflora improves nutrient digestibility and reduces disease susceptibility.

Mycotoxin management is equally critical because contaminated feed ingredients can impair gut integrity, suppress immunity, and reduce productivity. The use of toxin binders and strict feed quality control helps maintain flock performance under challenging feeding conditions.

Digital Technologies and Precision Poultry Farming
Precision poultry farming integrates digital technologies, automation, sensors, artificial intelligence, and data analytics to optimize poultry production efficiency.

Applications of Precision Poultry Farming
– Real-time flock monitoring.
– Automated mortality detection.
– Feed and water consumption analysis.
– Environmental monitoring.
– Predictive disease surveillance.
– Behavioural analysis using cameras and sensors.

Artificial intelligence-based systems can identify deviations in flock behaviour before visible clinical signs appear. Early disease detection reduces mortality losses and treatment costs.

Cloud-based management platforms allow integration of production, nutrition, health, and financial data for better decision-making. Data-driven management improves resource utilization and supports economic sustainability.

Sustainability and Climate-Resilient Poultry Production

Sustainable poultry production requires balancing economic profitability with environmental responsibility. Rising feed costs and climate-related disruptions highlight the need for resilient feeding systems and efficient resource utilization.

Important Sustainability Strategies
– Diversification of feed ingredients.
– Use of locally available feed resources.
– Circular economy approaches.
– Reduction of feed carbon footprint.
– Water conservation.
– Renewable energy utilization.

Climate-smart poultry production systems emphasize resilience against heat stress, feed shortages, disease outbreaks, and market volatility. Alternative proteins such as legumes, insect meal, algae, and agro-industrial by-products contribute to greater feed system sustainability.

The integration of smart technologies further improves resource efficiency and environmental performance.

Way Forward
Rising feed costs represent one of the most significant challenges confronting modern poultry production systems. Since soybean meal remains a major contributor to feed expenses, reducing dependency on conventional soybean-based diets has become an economic necessity for poultry producers worldwide. A wide range of alternative protein sources—including oilseed meals, legumes, agro-industrial by-products, insect meal, algae, microbial proteins, and fermented feed ingredients—offer considerable potential for reducing feed costs while maintaining productive performance.

However, successful incorporation of soymeal alternatives requires scientific feed formulation, proper ingredient processing, amino acid balancing, quality control, and strategic use of feed additives and enzymes. No single alternative ingredient can completely replace soybean meal under all production conditions; therefore, diversified and flexible feeding programs are essential.

Equally important is the adoption of smart farm management systems that improve feed efficiency and operational sustainability. Precision nutrition, automated feeding systems, environmental control technologies, gut health management, digital monitoring platforms, and artificial intelligence-based decision support systems can substantially enhance profitability during periods of volatile feed prices.

The future poultry industry will increasingly depend on the integration of alternative feed resources with precision poultry farming technologies. Producers capable of combining nutritional innovation, smart management, and sustainability-oriented practices will be better positioned to withstand economic uncertainties and maintain long-term profitability. Thus, exploring soymeal alternatives alongside intelligent farm management is not merely a temporary response to rising feed costs, but a strategic transformation toward resilient, efficient, and sustainable poultry production systems for the future.

The 7th edition of the Global Talks Series presents an inspiring conversation with Ms. Tori Sorensen, a globally respected advocate for sustainable agriculture, soybean processing, and animal nutrition education. This edition explores Tori Sorensen’s journey from her farm roots in Iowa to becoming a global voice in soy innovation and protein security. Through her leadership at Insta-Pro International and contributions with U.S. Soybean Export Council (USSEC), she has helped advance feed processing technologies, sustainable animal nutrition, and global education initiatives across more than 100 countries. As former Chair of the Soy Excellence Center (SEC) Committee, Tori played a leading role in strengthening global training programs for feed manufacturing and agribusiness professionals, including the establishment of SEC India. Her work continues to inspire the poultry and livestock industries through innovation, education, and a strong commitment to global protein security.

Career Summary:
In a world where global food systems face sustainability and production challenges, Tori Sorensen has built a career focused on advancing global agriculture through education and communication in soybean processing and animal nutrition. As Marketing Director for Insta-Pro International, she has helped expand the company’s global presence by promoting sustainable feed processing solutions across international markets. Outside her position at Insta-Pro, Tori has become a thought leader and a staunch advocate for sustainable agriculture practices and education on soybean processing.

Early Career/Background:
Raised on a farm in southeast Iowa, agriculture and the value of hard work played a defining role in shaping Tori’s life and career. She experienced the realities of farm life first hand by detasseling corn, walking beans, helping with the family grain bin business, and learning to drive a tractor before she even learned to drive a car.
Like many farm families impacted by the 1980s farm crisis in the United States, her family faced significant hardship, including losing their farm and home at auction. Those experiences left a lasting impact and helped shape her perspective on resilience, opportunity, and education. Inspired by her father’s belief that “they can take everything from you, but they can’t take away your education.” Sorensen developed a deep passion for agricultural education and leadership development, which continues to influence her work in her global agriculture outreach today.

Marketing Director at Insta-Pro International:
As current Marketing Director for Insta-Pro International, Tori Sorensen has helped build global partnerships focused on soybean processing, feed efficiency, and animal nutrition education. Working with customers and distributors in more than 100 countries, for the last 12 years, she has supported international outreach efforts that promote high-shear dry extrusion technology and sustainable soy processing solutions for poultry, livestock, and feed production. Her role often combines technical education with relationship-building, helping connect feed producers and processors around the world with U.S. soy innovation and processing expertise.

Global Partnerships and Outreach:
Through her leadership at Insta-Pro International and former volunteer positions at USSEC, Tori has leveraged her expertise and resources to lead workshops, presentations, technical trainings, and international outreach programs focused on soybean processing and animal nutrition education. By combining Insta-Pro’s expertise in high-shear dry extrusion and feed processing with USSEC’s global education initiatives, she has helped connect producers, nutritionists, feed mills, and agribusiness leaders from across the globe with practical knowledge on feed efficiency, soybean meal quality, and sustainable protein production. Her work centers on creating collaborative learning opportunities that strengthen industry partnerships while advancing the understanding of U.S. soy technologies in global markets.

USSEC Leadership:

In addition to her role at Insta-Pro International, Tori has also served in several leadership positions with the U.S. Soybean Export Council (USSEC), including Board of Directors (2019-2025) founding Chair of the SEC (Soy Excellence Center) Committee (2019-2025) and Co-Chair of the Animal and Aquaculture Utilization Team from 2017 to 2019. As Chair of the SEC she led the establishment and growth of the educational programs designed to train emerging leaders in feed manufacturing and agribusiness across the globe. The centers focus on advancing animal nutrition, supporting sustainable protein production, and strengthening international trust in U.S. soybean quality and processing technologies.

Spotlight on India & USSEC SEC
As Chairwoman, Tori led the SEC global presence, in four regions – Americas, Asia, MENA, and Sub-Saharan Africa with focused Centers in Thailand, Egypt, Nigeria, and established in 2024, India.

With 1.4 billion people strong and a rapidly growing economy, India is one of the worlds largest and most diversified food producers with agriculture contributing to over 20% of the economy. Challenged with a young workforce and unique market needs, the SEC program aligned with the Indian government’s focus on skills development for youth, making them ready for jobs under the ‘Skills India’ initiative.

In 2024; Tori, along with 14 Industry Leaders from India and the SEC Global Advisory Panel, held its inaugural meeting in Mumbai. This meeting provided guidance and direction on tailoring SEC offerings to solve key training challenges and operational hurdles in India’s food and agribusiness operations.

During her tenure as Chairwoman of the SEC, Tori led this transformative training program, preparing over 20,000 participants globally with the skills needed to be future-ready. Making her a strong advocate for global protein security through soy innovation and animal nutrition. A fitting legacy to her father’s belief in the importance, permanence and impact of education.

“Education is the most sustainable investment we can make for the future of global agriculture. When we empower people with knowledge, innovation, and opportunity, we strengthen food security and create a better future for generations to come.” 

— Tori Sorensen

Introduction
The poultry industry has emerged as one of the most dynamic and rapidly expanding segments of the livestock sector in India. Over the past few decades, the sector has transformed from a subsistence-level backyard activity into a highly organized and technologically driven industry. Poultry production plays a critical role in ensuring nutritional security by providing affordable sources of high-quality animal protein in the form of eggs and chicken meat. In addition, the sector contributes substantially to rural employment, income generation, and the growth of allied industries such as feed manufacturing, pharmaceuticals, hatcheries, and processing units. With a population exceeding 1.4 billion and steadily rising income levels, the domestic demand for poultry products has increased significantly. Despite the strong domestic market, India possesses substantial potential to expand its presence in international poultry trade. Globally, poultry meat is one of the fastest-growing sources of animal protein due to its relatively low cost, high nutritional value, and minimal cultural or religious restrictions. Consequently, many developing countries are witnessing a surge in poultry consumption. India, being among the leading producers of eggs and poultry meat in the world, has the capacity to meet a portion of this growing global demand. However, the export share of Indian poultry products remains relatively modest compared with major exporting nations. Understanding the export potential and global competitiveness of the Indian poultry sector is therefore essential for designing strategies that can enhance the country’s participation in global markets. In this article we shall try to examine the production strength, comparative advantages, export trends, constraints, and future opportunities that will determine India’s ability to become a competitive player in the international poultry trade.

Evolution and Growth of the Industry
The growth trajectory of the Indian poultry industry has been remarkable, particularly since the 1970s when scientific poultry farming began gaining momentum. Initially, poultry rearing in India was largely confined to backyard systems characterized by indigenous breeds with low productivity. The introduction of improved poultry breeds, scientific feeding practices, and better disease management gradually led to increased productivity and commercialization. Government support through various livestock development programs further accelerated the expansion of the sector. In the 1980s and 1990s, the emergence of private hatcheries, commercial feed mills, and vertically integrated poultry enterprises transformed the industry structure. Integration enabled better coordination among breeding, feed production, broiler growing, processing, and marketing activities, leading to greater efficiency and reduced production costs.

In recent years, modern technologies such as automated climate-controlled poultry houses, precision feeding systems, and improved genetic strains have significantly enhanced productivity levels. India has now become one of the largest producers of eggs and poultry meat globally. The country produces more than 149 billion eggs annually and 4.95 million tonnes of poultry meat, reflecting the rapid growth of the sector. This expansion has been supported by the availability of skilled manpower, improved veterinary services, and a strong research base in poultry science. The industry also benefits from an extensive network of small and medium poultry farmers who contribute to production through contract farming and cooperative models. The transformation of the Indian poultry sector demonstrates its ability to adapt to technological innovations and market demands, which is a crucial factor in developing export competitiveness.

Current Production Scenario
India’s poultry industry today represents a major component of the country’s livestock economy. Egg production has witnessed consistent growth over the past two decades, positioning India among the top two egg-producing nations in the world. Several states have emerged as major poultry production hubs due to favourable climate, infrastructure, and investment. States such as Andhra Pradesh, Tamil Nadu, Telangana, Karnataka, and West Bengal account for a significant share of the country’s egg and poultry meat production. These regions have developed strong production clusters supported by hatcheries, feed mills, and marketing networks. The broiler sector has also expanded rapidly, driven by increasing urban demand for poultry meat. The organized broiler industry operates through integrated production systems in which large companies provide chicks, feed, and technical support to contract farmers, while marketing the final product through established distribution channels. Such systems help maintain uniform quality and reduce production risks for farmers. Per capita consumption of eggs (106 eggs/capita/annum) and poultry meat (7.5 kg / capita / annum) in India has steadily increased as consumers recognize the nutritional benefits of these products. Eggs are considered an affordable and high-quality source of protein, vitamins, and minerals, while poultry meat is widely accepted across various cultural and religious groups. The expanding domestic market has been the primary driver of industry growth. Nevertheless, the scale of production achieved by the Indian poultry sector provides a strong foundation for exploring export opportunities, particularly in regions where demand for poultry products is growing rapidly.

Export Profile of Indian Poultry Products
Although India is among the leading producers of poultry products, its share in global poultry exports remains relatively small. The majority of poultry production in the country is consumed domestically, leaving limited quantities available for export. Nevertheless, India does participate in international trade in several poultry products. The main export items include table eggs, egg powder, liquid egg products, frozen chicken meat, and certain processed poultry products. Among these, egg powder and processed egg products constitute a significant proportion of India’s poultry exports. These products are widely used in the bakery, confectionery, and food processing industries in many countries. Major export destinations for Indian poultry products include countries in the Middle East, South Asia, and Southeast Asia. Nations such as Oman, the United Arab Emirates, Maldives, Sri Lanka, and Vietnam import eggs and poultry products from India due to geographical proximity and established trade relationships. Export volumes tend to fluctuate depending on factors such as domestic demand, international market prices, and disease outbreaks. Despite these fluctuations, the poultry export sector has shown gradual growth in recent years. However, compared with global leaders in poultry exports, India’s presence in international markets remains limited. Increasing export volumes will require improvements in processing infrastructure, quality standards, and supply chain management. Strengthening these areas will enable Indian poultry producers to compete more effectively with established exporters in the global market.

Comparative Advantages of the Indian Poultry Sector
India possesses several inherent advantages that can support the expansion of poultry exports and enhance its competitiveness in global markets. One of the most significant strengths is the large production base of eggs and poultry meat. The scale of production allows the industry to generate surplus quantities that can potentially be directed toward export markets. Another important advantage is the availability of diverse agro-climatic conditions that support year-round poultry production. This ensures a continuous supply of poultry products throughout the year, which is essential for maintaining export commitments. India also benefits from a large pool of skilled and semi-skilled labour engaged in poultry farming, processing, and marketing activities. Labor costs in India are relatively lower compared with many developed poultry-producing countries, providing a competitive edge in terms of production and processing expenses. Furthermore, the country has developed a strong research and development infrastructure in poultry science through universities, research institutes, and industry partnerships. These institutions contribute to improvements in breeding, nutrition, disease control, and farm management practices. Another advantage is the strategic geographical location of India, which allows easy access to markets in the Middle East, Africa, and Southeast Asia.
Shorter shipping distances reduce transportation costs and help maintain product quality. These comparative advantages, if effectively utilized, can significantly enhance the export potential of the Indian poultry industry.

Global Poultry Trade Dynamics
The global poultry trade is characterized by intense competition among a few major exporting countries that dominate international markets. Nations such as Brazil, the United States, Thailand, and several European countries account for a large share of global poultry exports. These countries have developed highly efficient production systems supported by advanced genetics, large-scale feed production, modern processing facilities, and strong export marketing networks. Brazil, for instance, has emerged as the largest exporter of poultry meat due to its abundant feed resources, large-scale integrated operations, and well-developed logistics infrastructure. Similarly, the United States benefits from high productivity, advanced technology, and strong global distribution systems. In contrast, many developing countries with growing poultry industries, including India, have not yet fully realized their export potential. Global poultry demand continues to rise due to increasing population, urbanization, and changing dietary preferences. Poultry meat is often preferred over other meats because it is relatively affordable, has lower fat content, and is widely acceptable across cultures. As a result, emerging economies in Asia, Africa, and the Middle East represent important growth markets for poultry exporters. For India to compete effectively in this global environment, it must improve its production efficiency, processing capacity, and compliance with international quality standards. Understanding the dynamics of global poultry trade is essential for identifying strategic opportunities and positioning Indian poultry products in suitable international markets.

Cost of Production and Feed Economics
One of the most critical factors influencing the global competitiveness of the Indian poultry industry is the cost of production, particularly the cost of feed. Feed typically accounts for nearly seventy to eighty percent of the total cost of poultry production. The major feed ingredients used in poultry diets include maize and soybean meal, both of which are subject to price fluctuations due to variations in agricultural production and market demand. In India, the prices of these feed ingredients are often higher compared with those in major poultry-exporting countries. High feed costs increase the overall cost of poultry meat and egg production, making Indian products less competitive in international markets. In addition to feed costs, other factors such as energy prices, transportation costs, and infrastructure limitations also contribute to production expenses. Improving feed efficiency through better genetics, balanced nutrition, and innovative feed additives can help reduce production costs. The development and adoption of alternative feed ingredients, including agricultural by-products and locally available feed resources, may also contribute to cost reduction. Furthermore, improvements in feed processing technologies and feed management practices can enhance nutrient utilization and overall productivity. Addressing the issue of feed cost is therefore a key requirement for strengthening the global competitiveness of the Indian poultry industry and enabling it to compete effectively with established poultry exporters.

Quality Standards and Food Safety Requirements
Access to international poultry markets depend heavily on compliance with stringent quality and food safety standards. Importing countries require strict adherence to regulations related to hygiene, product safety, and animal health. Poultry products must meet internationally recognized standards such as Hazard Analysis and Critical Control Points (HACCP), ISO quality management systems, and various sanitary and phytosanitary regulations. Additionally, many markets require certification related to halal processing, particularly in regions with large Muslim populations. Ensuring compliance with these standards requires significant investment in modern processing facilities, laboratory testing, and quality control systems. Traceability of poultry products from farm to processing plant is also becoming increasingly important in international trade. Consumers and regulatory authorities in many countries demand transparency regarding production practices, feed ingredients, and disease control measures. Indian poultry processors must therefore adopt advanced monitoring systems to maintain product quality and safety throughout the supply chain. Training of personnel in hygiene practices and quality management is equally essential. By strengthening food safety systems and ensuring consistent product quality, India can enhance the reputation of its poultry products in international markets. Improved compliance with global standards will not only facilitate export growth but also benefit domestic consumers by ensuring safer and higher-quality poultry products.

Infrastructure and Supply Chain Challenges
Infrastructure development plays a critical role in determining the export readiness of the poultry industry. In India, one of the major constraints affecting poultry exports is the limited availability of modern processing facilities and cold chain infrastructure. A large proportion of poultry birds are still marketed as live birds rather than processed products. This traditional marketing system restricts opportunities for value addition and limits the shelf life of poultry products. Export markets generally require processed, packaged, and frozen poultry products that can withstand long-distance transportation. The availability of refrigerated storage facilities, cold transport vehicles, and efficient port infrastructure is essential for maintaining product quality during export. Inadequate cold chain logistics can lead to spoilage and quality deterioration, reducing the competitiveness of poultry exports. Furthermore, transportation costs and logistical inefficiencies can increase the final price of exported products. Strengthening supply chain infrastructure through investments in modern slaughterhouses, cold storage units, and refrigerated transport systems is therefore essential for expanding poultry exports. Public-private partnerships and government support programs can play an important role in developing such infrastructure. Improved logistics and supply chain management will enhance the efficiency of poultry exports and ensure that Indian products reach international markets in optimal condition.

Opportunities in Emerging Markets
Despite the challenges faced by the poultry sector, several opportunities exist for expanding India’s presence in global poultry trade. One of the most significant opportunities lies in the rapidly growing demand for poultry products in developing regions such as Asia, Africa, and the Middle East. Population growth, rising incomes, and urbanization in these regions are driving increased consumption of animal protein. Poultry meat, being relatively affordable and easy to prepare, is often the preferred choice among consumers. India’s geographical proximity to many of these markets provides a logistical advantage in terms of transportation time and cost. Additionally, cultural similarities and established trade relationships with several Asian and Middle Eastern countries can facilitate market access. Another important opportunity lies in the production of value-added poultry products such as ready-to-cook and ready-to-eat items. The global demand for convenience foods is increasing as urban lifestyles become more hectic. Indian poultry processors can capitalize on this trend by expanding the production of processed and packaged poultry products. Developing specialized export zones for poultry processing and strengthening branding and marketing strategies can further enhance India’s export prospects. By focusing on emerging markets and innovative product development, the Indian poultry industry can significantly increase its share in international poultry trade.

Strategic Interventions for Enhancing Competitiveness
To fully realize its export potential, the Indian poultry industry must adopt a series of strategic interventions aimed at improving productivity, quality, and market access. One of the primary priorities should be the modernization and expansion of poultry processing infrastructure. Establishing more integrated processing plants equipped with advanced technology will enable the production of high-quality export-oriented poultry products. Strengthening veterinary services and disease surveillance systems is also crucial for preventing outbreaks that could disrupt export trade. Investments in research and development are needed to improve poultry genetics, nutrition, and disease management practices. The development of cost-effective feed formulations using locally available ingredients can help reduce production costs. Additionally, capacity building programs should be implemented to train farmers, technicians, and processing personnel in modern poultry management and food safety practices. Government policies aimed at promoting agricultural exports, including financial incentives and infrastructure development programs, can further support the growth of poultry exports. Collaboration between government agencies, research institutions, and the private sector will be essential for implementing these strategies effectively. By adopting a coordinated approach that integrates technological innovation, infrastructure development, and policy support, India can significantly enhance the global competitiveness of its poultry industry.

Future Outlook
The Indian poultry industry has achieved remarkable progress over the past several decades, evolving into one of the most vibrant sectors of the country’s agricultural economy. With a large production base, expanding domestic demand, and improving technological capabilities, the industry possesses substantial potential to become a significant exporter of poultry products. However, realizing this potential requires addressing several structural challenges, including high feed costs, limited processing capacity, inadequate cold chain infrastructure, and strict international quality requirements. Strengthening these areas will be critical for enhancing the competitiveness of Indian poultry products in global markets. At the same time, the growing global demand for affordable animal protein presents significant opportunities for export expansion. By focusing on value-added poultry products, improving supply chain efficiency, and ensuring compliance with international food safety standards, India can strengthen its position in international poultry trade. Continued investment in research, infrastructure, and policy support will play a vital role in achieving this objective. In the coming years, the integration of modern technologies, sustainable production practices, and export-oriented strategies is likely to transform the Indian poultry industry into a globally competitive sector. Such progress will not only generate additional export earnings for the country but also contribute to rural development, employment generation, and improved nutritional security.

Importance of Livestock and Poultry Sector in India

India’s livestock sector plays a crucial role in the country’s agricultural and economic landscape, supporting the livelihoods of millions by providing employment, income and nutritional security. Poultry and livestock sector provides essential inputs for sustainable farming practices, ensuring the country’s food security. India’s poultry industry is currently valued at $ 30 billion which engages over six million people (both directly as well indirectly) and the poultry industry has grown rapidly over the past decade. Indian poultry industry is now one of the most efficient producers of broiler meat and eggs globally, due to well established integrated companies, contract farming and a strong domestic market.

Rising Growth and Feed Demand Imbalance
The livestock sector – dairy, poultry, fisheries and allied sector is witnessing a much faster growth than the agriculture crops (Soybeans & Maize), there is apprehension that domestic feed production may not be able to ensure steady supplies while exposing the sector to price volatility. The Confederation of Indian Industry (CII) in its vision document 2047 for the Indian poultry sector has also mentioned that the sector is growing at a healthy rate of 8% annually and could see further acceleration. Availability of good quality feed ingredients and their prices are major challenges for manufacturing of good quality compound feeds.

Role of India–US Interim Trade Agreement
Under the recently announced India-US interim-trade, the decision to eliminate or cut duties on a range of items from the US including dried distillers’ grains (DDGs) and red sorghum, is likely to ensure steady supplies of animal feed in coming years. Commerce minister Piyush Goyal had stated that India will provide quota-based duty concessions on DDGs to the US under the deal. Feed demand is projected to grow faster than domestic supply, making large scale imports necessary by the early 2030s. Domestic production of energy sources like maize and protein sources like soymeal often fall short of growing demand of the poultry, dairy and fisheries sector.

Feed Cost Pressure and Need for Imports
Domestic feed supply is increasingly constrained by limited arable land and productivity gaps. The feed costs constitute 60% to 65% of the cost of the production of the animal husbandry sector any volatility in the feed prices lead to rise in cost of production and subsequent rise in prices. Thus, feed imports, especially of reduced or zero duty imports of soybeans / soybean meal and maize, can help bridge the demand-supply gap. Imports from established origins such as US soy can provide consistent, high-quality protein during periods of domestic tightness. When used judiciously, imported soy can help smooth feed costs, improve formulation consistency, and enable feed manufacturers to meet the quality benchmarks demanded by large integrators and processors.

Growing Demand for Protein and Feed
With increase in income and urbanisation as demand for dairy and poultry products increases, according the United States Department of Agriculture (USDA) in its report titled ‘The Growing Demand for Animal Products and Feed in India’ has stated that at the current growth in the productivity of maize and soybean, would not be able to meet rising demand of feed. Feed demand is projected to grow faster than domestic supply, making large scale imports necessary by the early 2030s. “By ensuring a timely and cost-effective supply of these essential feed ingredients, the government is directly addressing the challenge of feed inflation. This will not only stabilise production costs for farmers but also ensure that high-quality protein remains affordable,”

Industry Concerns Over Feed Availability
Several National and State level Poultry Associations in a recent communication to Shri Rajiv Ranjan Singh, Union Minister of Animal Husbandry, Dairying and Fisheries, Government of India, has raised concern about availability and rising price of soybean meal in the country which pose risk to poultry production. The sector fears a crisis, which can severely affect livestock production and consumer prices. With nearly seven months until the next harvest of domestic soybean products, sustaining poultry production at viable cost will be difficult, directly impacting egg and chicken prices and overall inflation. Even maize prices have witnessed volatility as demand for the grain is rising not only because of rise in animal feed demand but also its being used for making ethanol and other industrial use.

Future Demand Projections (2047 Vision)
India’s population is around 1.4 billion and is projected to be approximately 1.53 billion by 2047. This increase in population directly correlates with the higher demand for food including eggs and chicken. Per capita poultry meat and eggs are expected to be 15 kg and 200 eggs annually by 2047. Around 38 million tonne (MT) of broiler feed and 34 MT of layer feed will be required in 2047. At 30% penetration rate, cattle feed requirement will be around 90 MT in 2047. Fish and shrimp feed required will be around 7 MT in 2047.

Way Forward: Ensuring Sustainable Feed Supply
Ensuring sustainable feed supplies in coming years would be a key challenge for the sector. By ensuring cost-effective supply of animal feed ingredients, the government can directly address the challenge of feed inflation. This will not only stabilize production costs for poultry, dairy and aqua farmers but shall also ensure that high-quality protein remains affordable for the consumers. The interim deal with the US provides a window of opportunity for allowing feed ingredients imports which is expected to boost the sustainable growth of the India’s poultry sector in the coming years.

Feed Cost Volatility & Raw Material Availability in the Indian Poultry Sector

Prof. (Dr.) P.K. Shukla and Dr. Amitav Bhattacharyya
Department of Poultry Science, College of Veterinary Science and Animal Husbandry, Mathura (U.P.)
– President, Indian Poultry Science Association.
– Chairman, Scientific Panel 13 of FSSAI on Meat and Meat Products including poultry.
– Vice President, World Veterinary Poultry Association(I)

Abstract
Feed constitutes the largest single cost component in commercial poultry production, typically accounting for 60–75% of total production cost. In India, volatility in feed costs and irregular availability of key raw materials (maize, soybean/soybean meal, rapeseed meal, fishmeal, and others) have created recurring pressures on producer margins, market stability and food security. This article examines the drivers of feed cost volatility in the Indian poultry sector, assesses patterns of raw material availability, and evaluates short- and medium-term strategies used by industry and policymakers to manage risk. We synthesise recent market evidence (2023–2025), identify structural vulnerabilities—such as dependence on a narrow set of feed ingredients, fragmented procurement, and policy mismatches—and review practical mitigation strategies including alternative feed ingredients, feed formulation optimisation, vertical integration, risk-sharing contracts, and public policy interventions (market intelligence, buffer stocks, and targeted support). The article concludes with recommendations for research priorities and policy measures to improve resilience of the poultry value chain to feed cost and supply shocks. Key messages include: (1) diversification of feed ingredient base and adoption of precision feed formulation can materially reduce vulnerability; (2) industry–government coordination on trade and stock policy is essential to stabilise domestic supplies without harming producers or farmers; and (3) investment in local value chains (oilseed processing, maize storage, and by-product utilisation) plus real-time price information systems are high-impact, actionable steps.

Keywords
Feed cost, volatility, raw material availability, poultry, maize, soybean meal, rapeseed meal, India, risk management

1. Introduction
Poultry production in India is a rapidly expanding sector that plays a major role in animal-sourced protein supply and rural livelihoods. Feed cost remains the dominant expense for broiler and layer operations; fluctuations in feed ingredient prices directly translate into margin volatility for producers and price variability for consumers. The Indian feed matrix is dominated by maize (energy) and oilseed meals—primarily soybean meal—as the primary sources of energy and protein respectively. Rapid changes in global commodity markets, domestic crop yields driven by weather variability, policy changes (tariffs, minimum support prices), and trade disruptions have amplified feed input volatility in recent years. Reports and market analyses from 2023–2025 document episodic spikes and falls in ingredient prices, with corresponding effects on broiler and egg producers and regional market dislocations.

This paper systematically analyses drivers of feed cost volatility and raw material availability in India’s poultry sector, evaluates consequences across the value chain, and presents mitigation strategies with policy recommendations.

2. Scale and composition of poultry feed demand in India
The Indian poultry feed market is large and growing; recent industry estimates place the market value in 1.11 billion USD in 2024, with poultry feed comprising the lion’s share of the animal feed market. Poultry feed typically represents 60–75% of the cost of broiler production (varying by system and region), and maize and soybean meal together form the largest portion of feed formulations. Market reports project continued growth driven by rising protein demand, urbanisation and improved cold-chain and retail infrastructure and the Market size is expected to touch 2.02 billion USD by 2033.

3. Key feed raw materials: roles and supply characteristics

3.1 Maize (corn)
Maize is the principal energy source in poultry rations. Domestic maize production in India is concentrated in certain states (Maharashtra, Karnataka, Telangana, Andhra Pradesh, and others) and is highly seasonal. Maize price at mandis shows substantial spatial variability and seasonality; mandi price dashboards indicate continuing price swings across districts and markets. Maize accounts for a large share of the feed mix and therefore small percentage price changes in maize can significantly change total feed cost.
3.2 Soybean and soybean meal
Soybean is the main oilseed in India; soybean meal derived from oil extraction is the major protein source in poultry feed. Soybean/ soymeal price movements are influenced by domestic sowing area, yields, global soybean markets (U.S., Brazil, Argentina), and policy levers such as import/export duties and MSPs. Price indices show notable volatility over 2023–2025, impacting meal costs for feed mills.

3.3 Rapeseed/rape meal and other oilseed meals
Rapeseed meal and other oilseed by-products can substitute partially for soybean meal, depending on amino acid profile and anti-nutritional factors. Global demand shifts (for example, China’s import changes) can affect availability and price of rapeseed meal. Recent trade flows have seen China increase purchases of Indian rapeseed meal, affecting local supply-demand dynamics.

3.4 Fishmeal, meat-bone meal, and other protein concentrates
Fishmeal is used in some high-performance rations but is expensive and subject to marine resource constraints and import dynamics. Alternative protein sources (pulses, by-products, microbial proteins) remain in experimental or pilot phases for large-scale adoption in India.

3.5 By-products and alternative ingredients (DDGS, bakery waste, millet, pulses)
By-products (distillers dried grains with solubles—DDGS), local pulses, oilseed cakes, and agricultural residues can be used in formulations. Their utilisation depends on consistent supply, nutritive value, cost, and processing infrastructure.

4. Drivers of feed cost volatility

Feed cost volatility arises from an interplay of supply-side and demand-side factors. Major drivers include:
4.1 Weather, crop yields and climate risks
Weather shocks (droughts, unseasonal rains, floods) directly affect maize and soybean harvests. India’s monsoon variability and localised extreme events have produced year-on-year yield swings that ripple into feed markets.
4.2 Global commodity markets and trade linkages
Soybean and maize are global commodities; shifts in harvests in Brazil, the US and Argentina, along with currency movements and shipping costs, influence Indian domestic prices—especially when domestic supply is insufficient and imports or exports respond. For soymeal, global price trends were an important factor in 2024–2025 price fluctuations.
4.3 Policy and trade measures (MSP, import/export duties, subsidies)
Government measures such as minimum support prices (MSP) for oilseeds, import duty changes, and export controls can abruptly change domestic availability and prices. For example, MSP changes and state procurement interventions for soybeans and maize have been signalled as drivers of local price movements. Industry commentary has pointed to expected MSP-related maize/soybean price increases and consequent feed-cost pressure.
4.4 Biofuel and competing demand
Increasing demand for biofuels (producing ethanol from maize or oilseed-derived biodiesel) and food processing (edible oil demand) can redirect feed-grade grains toward other uses, tightening availability for feed.
4.5 Supply-chain and storage losses
India’s post-harvest handling, limited cold-storage/controlled-environment large-scale feed reserves in some regions, and fragmented procurement by smallholder farmers contribute to localized shortages and price spikes during lean months.
4.6 Disease outbreaks and market sentiment
Avian influenza outbreaks periodically depress demand for poultry meat and disrupt distribution channels, complicating producers’ ability to manage feed purchases and inventories. Downward price shocks in broiler market can lead to abrupt feed demand reductions (and vice versa), creating cyclical volatility.

5. Recent evidence (2023–2025): patterns and episodes
Recent studies and market reports highlight episodic volatility. Industry analyses and rating-agency reports documented significant corrections in broiler prices in early 2025 due to demand shocks from disease events, and analysts reported large swings in feed ingredient costs during FY2024–25. Price series for soybean meal and maize show variability across months, with soybean meal monthly indices demonstrating notable up-and-down swings in 2023–2025. Industry associations warned of feed-cost increases of 7–8% in specific years owing to MSP hikes and lower oilseed crops, and regional news reported local maize price increases that narrowed poultry margins.

6. Impact on poultry producers and value chain

6.1 Producer margins and market stability
Given feed’s dominant share in production cost, price increases in maize or soybean meal quickly compress producer margins. Smaller and mid-size producers—operating with narrow working capital—are particularly vulnerable and may be forced to reduce stocking density, delay restocking or exit, causing supply-side shocks.
6.2 Consumer prices and food security
Large feed cost shocks can translate into higher retail prices for meat and eggs, impacting affordability and consumption patterns, especially for low-income consumers.
6.3 Contract farming and backward linkages
Feed volatility influences contracting: integrators that can secure raw materials through backward integration or long-term contracts are better cushioned. Small independent farmers, by contrast, face higher input-price risk.
6.4 Investment and sectoral growth
Unpredictable input costs deter long-term investment in production capacity and in value-chain improvements (cold chain, processing), affecting sectoral growth trajectories.

7. Industry and technical mitigation strategies

To manage feed cost volatility and raw material shortages, poultry producers and feed mills deploy a combination of technical, commercial and managerial strategies:
7.1 Feed formulation optimisation and least-cost formulations
Modern feed mills use least-cost linear programming and precision formulation to rebalance rations when ingredient prices shift—substituting cheaper yet nutritionally acceptable ingredients while maintaining performance. Adoption of real-time formulation tools and laboratory quality checks improves response speed.
7.2 Ingredient substitution and use of alternatives
Use of alternative protein/energy sources (rapeseed meal, sunflower meal, local pulses, DDGS, millet by-products, and processed oilseed cakes) can reduce dependence on soybean meal. However, substitution must account for amino acid balance, digestibility, and anti-nutritional factors. Industry publications and trade articles list practical alternatives but caution about scale and consistency of supply.
7.3 By-product valorisation and localised sourcing
Using agro-industrial by-products (bakery waste, oil-extraction cakes from local mills, brewery wastes, and vegetable-processing residues) can lower costs if processed to ensure feed hygiene and nutritive stability.
7.4 Vertical integration and contract farming
Integrators invest upstream in feed mills, oilseed crushing units, maize procurement and storage. Contract farming for maize and oilseeds can secure supplies but requires well-designed contracts, extension services, and price-sharing mechanisms.
7.5 Hedging, forward buying and inventory management
Larger companies hedge exposure through forward purchase contracts, forward pricing arrangements, and by maintaining strategic inventories at critical times. Smaller producers lack these instruments; cooperatives or producer groups can pool purchases.
7.6 Feed efficiency and management
Improving feed conversion ratio (FCR) via genetics, health management, and precision feeding reduces feed required per unit of product and partially offsets price pressure.

8. Policy and institutional options
Policy measures and institutional mechanisms can mitigate volatility and improve raw material availability:
8.1 Market intelligence, price transparency and early warning systems
Timely, disaggregated market data on mandi prices, stock levels, and international signals helps stakeholders make informed procurement decisions. Public–private platforms can disseminate such data.
8.2 Trade policy calibration and temporary measures
Careful use of tariffs, import concessions and export restrictions can be deployed temporarily to stabilise domestic availability, but must be calibrated to avoid perverse incentives for farmers and traders. For example, import duties on vegetable oil and oilseed-derived products were adjusted in 2025 to support local farmers; such policies have complex downstream effects for feed users.
8.3 Encouraging domestic oilseed and maize production
Longer-term measures include supporting oilseed and maize productivity—through R&D, improved seeds, extension, and post-harvest storage—to reduce dependency on imports and narrow seasonal supply gaps.
8.4 Strategic buffer stocks and credit support
Targeted buffer stocks (at state or cooperative level) for critical feed ingredients and credit facilities for feed procurement during lean months can stabilise supplies for small producers.
8.5 Quality and safety standards for alternative ingredients
Regulatory clarity on the use of non-conventional ingredients and by-products (including testing, permissible inclusion rates, and safety) would accelerate adoption of substitutes.

9. Case studies and illustrative examples
9.1 Regional maize price surge impacting Namakkal farmers (Tamil Nadu)
Regional media reported maize price increases (e.g., reports of maize price rising from Rs 2,400 to Rs 2,800 per quintal in certain contexts), which narrowed producer profits and illustrated how regional price swings can rapidly erode margins in poultry-dense areas.
9.2 Anticipated feed-cost increase due to MSP and oilseed dynamics
Industry associations warned in 2025 that government MSP changes and expected soybean crop responses could raise feed costs by 7–8% in a season, highlighting the sensitivity of poultry margins to policy-induced price movement.
9.3 Rapeseed meal trade and global demand shift
Trade news in 2025 showed China increasing purchases of Indian rapeseed meal following tariffs on Canadian supplies; this affected local availability and price dynamics of an alternative protein feed ingredient. This example shows how distant policies can have immediate consequences for domestic feed availability.

10. Strategic recommendations (short-, medium-, long-term)

Below are actionable recommendations organised by time horizon and stakeholder.
10.1 For producers and industry (short to medium term)
1. Adopt dynamic feed formulation tools (least-cost and nutrient-constraint optimisers) to respond rapidly to price changes.
2. Farm purchasing cooperatives among small/mid-size producers to aggregate demand and negotiate forward contracts.
3. Invest in feed efficiency via genetics, health management (biosecurity, vaccination), and precision feeding to reduce FCR.
4. Explore regional alternative ingredients (subject to safety and nutritional validation) to diversify supply.
10.2 For feed manufacturers and integrators (short to medium term)
1. Backward integrate into oilseed crushing and maize procurement where feasible.
2. Strengthen quality-control labs to validate alternative ingredients and mix consistency.
3. Use hedging and forward buying selectively; offer producer-friendly contract products for small farmers.
10.3 For policymakers (medium to long term)
1. Enhance market transparency: Build or support real-time price and stock platforms for feed raw materials.
2. Calibrate trade policy to avoid unintended domestic shortages—use time-limited import concessions when domestic shortages are acute.
3. Support oilseed and maize productivity: incentivise improved seed adoption, crop diversification and investment in storage.
4. Facilitate safe use of by-products: create standards and guidelines for utilisation of agro-industrial by-products in feed.
5. Promote research on alternative protein sources (microbial proteins, insect meal, and pulses) to reduce long-run dependence on a narrow ingredient base.

11. Research gaps and future directions
Key research areas that could strengthen resilience include:
– Nutritional evaluation and scaling pathways for novel proteins (insect meal, single-cell proteins) under Indian conditions.
– Socio-economic studies of contracting models that allow input price risk-sharing between integrators and farmers.
– Systems-level modelling of supply shocks and policy responses to evaluate trade-offs between farmer incomes, consumer prices and food security.
– Life-cycle assessments of alternative feed ingredients to ensure environmental sustainability with cost-effectiveness.

12. Conclusion
Feed cost volatility and raw material availability are structural challenges for the Indian poultry sector with both immediate and long-term implications. The dominance of maize and soybean meal in the ration, combined with weather sensitivity, global market linkages, and policy dynamics, creates recurring vulnerability.
However, a combination of industry practices (formulation optimisation, alternative ingredients, vertical integration), collective action (cooperatives, contract purchasing), and well-calibrated policy measures (market information, targeted trade measures, productivity support) can materially reduce exposure and enhance resilience. Concerted action across stakeholders—feed mills, producers, input suppliers, researchers and policymakers—will be necessary to stabilise costs, protect producer margins, and ensure reliable, affordable availability of poultry products for consumers.

References are available on request.