Ramadan spurs chicken price surge as demand peaks

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₹22,000 per tonne to ₹26,500 per tonne over the past three months. This is attributed to the government's push on ethanol production to achieve the E20 target by 2025-26, amid declining sugar production. Consequently, chicken prices rose from ₹100-110 a month ago to ₹106-130 per kg across key farm gates in tier-1 cities, including Delhi, Bengaluru and Kolkata, according to spot traders.

Retail food inflation climbed from 8.3% in January to 8.66% in February, marking a 6% increase from the previous year, primarily driven by a sequential uptick in vegetable and meat prices. Specifically, poultry price inflation reached 5.7% last month, compared to (-) 4% a month earlier and 2.4% a year ago. “Rise in demand for broiler during Ramzan is expected to lead to a slight increase in prices in March and April," said Pushan Sharma, director-research, Crisil Market Intelligence and Analytics.

“Spread of bird flu in the southern states remains a key monitorable." Rising maize prices have resulted in an increase in poultry feed costs from ₹36,000 per tonne three months ago to ₹40,000-41,000 per tonne. This surge is linked to increased demand from starch mills and ethanol producers, driven by a shortfall in sugar production this year. Conversely, soymeal prices are witnessing a contrasting trend.

Over the past month, soybean meal prices remained steady, hovering at ₹39,000-40,000 per tonne across ex-solvent plants in Madhya Pradesh and Rajasthan. The demand for soymeal is primarily fulfilled by domestic production. Nevertheless, in 2021-22, India permitted the import of 1.2 million tonnes of genetically modified (GM) soymeal to support the poultry industry, after animal feed prices tripled to a record high.