Heat and rising feed costs drive egg prices higher in South Asia

Egg prices are continuing to rise across South Asia as extreme heat, water shortages and higher feed costs increase production expenses. India and Sri Lanka are facing the strongest pressure, with poultry producers raising farm-gate prices that are already being passed on to consumers.

One of the main drivers has been the increase in corn and soybean prices, the key ingredients used in poultry feed. Higher transportation costs, rising labor expenses and increased operating costs at poultry farms have also contributed to higher production costs.

Water availability has become another major challenge. High temperatures have significantly increased water demand at poultry farms, while drought conditions are forcing producers to purchase additional water. At the same time, heat stress has reduced laying performance, limiting egg production. Farm-gate prices in many Indian states have already exceeded $0.07 per egg.

A similar situation is unfolding in Sri Lanka, where higher corn prices have pushed up feed costs and hot weather has reduced egg production. The Sri Lanka Egg Producers Association has announced plans to increase prices to $0.12 per egg in the near term.

Market participants say the combination of adverse weather conditions and expensive feed ingredients continues to put pressure on the poultry sector. Unless weather conditions improve and feed costs ease, egg prices across South Asia are likely to remain on an upward trend.

Tags: prices, India, Sri Lanka, eggs