Tamil Nadu Poultry Farmers Concerned Over Maize Diversion for Ethanol Production

Chennai, Aug 2026 — Farmers fear tightening maize supplies as feed costs climb and egg prices stay below production cost.

Tamil Nadu poultry farmers concerned over maize diversion for ethanol production HERO BANNER
Maize Price
Rs 22 → Rs 30/kg
Egg Farm-Gate
Rs 5.20 vs Rs 5.50 cost
Broiler Farm-Gate
Rs 80 vs Rs 110/kg cost
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Chennai, Aug – 2026: The continued diversion of maize for ethanol production over the past two years has made poultry farmers uneasy, as they fear it could put pressure on maize supplies, reported DT Next.

Maize is a key ingredient in poultry feed, the price of which has increased sharply from around Rs 22 per kg to about Rs 30 per kg over the past year.

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Diversion Volumes Rising Year on Year

Vangili Subramaniam, president of the Tamil Nadu Egg Poultry Farmers Marketing Society, said maize has been diverted to ethanol production for the past two years, with larger volumes being allocated for ethanol this year. While farmers have not faced a shortage so far, he said they are increasingly concerned that supplies could tighten if the diversion continues to rise.

The increase in maize prices has pushed up poultry feed costs across major poultry hubs in Tamil Nadu.

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Egg Prices Below Production Cost

Adding to farmers’ distress, egg prices have remained low despite the steep rise in input costs. The farm-gate price of an egg is currently around Rs 5.20, against a production cost of approximately Rs 5.50, resulting in a loss of about Rs 0.30 per egg. The farm-gate price of broiler chicken is around Rs 80 per kg, while the production cost is estimated at Rs 110 per kg.

Another poultry farmer, S Murugavel, said egg prices have remained subdued during the Shravan month but are expected to improve with the onset of winter.

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