India’s poultry industry shifts focus to domestic market
INDIA – India’s poultry sector is redirecting its attention to domestic consumption as rising input costs and an underdeveloped export infrastructure make overseas sales less attractive, according to industry leaders.
Despite being the world’s second-largest producer of eggs, India ranks only 25th or 26th in egg exports, said Tarun Sridhar, former secretary in the Union Ministry of Animal Husbandry, Dairying and Poultry, during a briefing ahead of the 17th Poultry India Expo scheduled for November 25–28 in Hyderabad.
Sridhar questioned the logic of pursuing exports when local demand remains strong, saying producers earn better margins at home. He noted that for many, the domestic market provides higher returns than selling abroad.
India also ranks among the top five global meat producers, yet its citizens consume far less poultry and meat compared to many developing nations. Average annual meat consumption stands at only 3 kilograms per person, a figure lower than that of neighboring Bangladesh.
According to Naveen Pasuparthy, president of the Karnataka Poultry Farmers and Breeders Association (KPFBA), per capita chicken consumption in India is about 6 to 7 kilograms a year, while the average person eats roughly 103 eggs annually.
He said around 71 percent of Indians eat chicken and eggs, but with a population of 1.43 billion, domestic demand alone offers huge growth potential. “If there’s already such a large market here, why look outside?” he asked.
High Feed Costs Hindering Competitiveness
Producers face major cost disadvantages compared to countries that dominate the export trade, largely due to high feed prices. Corn sells at around US$0.26 to US$0.28 per kilogram in India, compared with US$0.16 per kilogram in key exporting nations. Soybean meal costs about 30 percent more locally, further driving up production expenses.
Divya Kumar Gulati, chairman of the Compound Livestock Feed Manufacturers Association (CLFMA), said that feed accounts for up to 85 percent of total production costs. “Our production cost averages around US$1.01, while competitors produce at least US$0.28 to US$0.34 less per unit,” he explained.
The price gap is partly linked to India’s ban on genetically modified crops, which are widely used elsewhere to reduce feed costs and improve yields.
Export Growth Faces Infrastructure Gaps
Industry players agree that without better processing and cold chain facilities, India cannot meet international hygiene and quality standards. Sridhar said that the lack of modern processing infrastructure limits the country’s ability to compete in export markets.
Gulati proposed establishing Export Processing Zones with duty-free imports to make exports more viable, though he admitted their success would depend on long-term feasibility.
Meanwhile, the United States and other major exporters continue to eye India as a lucrative destination for their poultry products, citing lower prices and strong consumer demand.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
