India’s poultry sector is entering a phase of continuous maturity due to rising incomes, urbanization, changing dietary habits and expansion of organized food services. The country produces more than 140 billion eggs annually, and the poultry market, which was valued at ₹2,304 billion in 2024, is projected to reach ₹8,430 billion by 2033, showing strong growth.
However, future expansion depends on feed availability and quality. Feed accounts for 60-70 per cent of production costs, with protein being the largest component and soybean meal playing an important role. Inconsistent protein supply leads to poor feed conversion, slow growth, high mortality and margin pressure. Improving access to reliable, high-quality feed is a key lever for improved productivity, cost efficiency and competitiveness.
Why does feed quality matter?
Feed is the highest operating cost for broilers and layers, making even small efficiencies important. Feed conversion ratio (FCR) – feed per kilogram of live weight – directly affects profitability. At current prices, increasing FCR from 1.8 to 1.7 could lead to meaningful savings for integrators and contract farmers. High-quality feed ensures consistently digestible amino acids and balanced nutrients in all shipments, supporting stable growth, uniform flocking and reliable egg production. Protein digestibility and amino acid balance influence growth, egg mass, flock uniformity and mortality, while quality soybean meal drives rapid growth and predictable production cycles.
Naveen Pasuparthy, president, Karnataka Poultry Farmers and Breeders Association (KPFBA), vice president, CLFMA of India, says feed contributes about 70-75 per cent to the production cost, which is mainly driven by maize and soybean meal. He highlighted that modern silos, soybean meal screening, bulk management, timely importation during shortages, and rational charges on essential feed additives can improve efficiency, reduce wastage and logistics costs, enhance competitiveness, stabilize farmers’ income, generate rural employment and support the goal of doubling farmers’ income.
With feed quality being so important, access to consistent, cost-effective protein sources, including thoughtfully regulated GM soybean meal, becomes a critical factor in ensuring efficiency and competitiveness in the poultry sector.
Supply Challenges and Market Volatility
India’s poultry feed largely depends on domestic oilseed production, with soybean cultivation and crushing capacity affecting feed availability and quality. A strong harvest eases supply pressure, while shortages, weather variability or export demand reduce supply and push prices higher.
Uneven soybean production disrupts pricing and stability. In a fragmented sector of 25,000 egg producers and nearly one million broiler and layer farmers, low margins often force formulation changes, impacting feed efficiency, flock performance and profitability.
Rising domestic soybean and soybean meal prices highlight the structural protein gap and highlight an opportunity: Stabilizing input costs through calibrated policy support can strengthen the poultry value chain and protect farmer viability.
role of imports
Domestic oilseed supplies do not always match the scale, quality or timing required for a modernizing poultry sector. Crop cycles, regional yield variations and instability can create temporary protein gaps. Well-calibrated imports of soybeans or soybean meal serve as a stabilizing tool, not a replacement for domestic production.
Imports from established origins such as the US provide high quality protein during supply shortages, smoothing feed costs and maintaining formulation consistency. Trade assessments increasingly see calibrated imports as part of a supply-management strategy focused on flexibility, while strengthening domestic capacity.
The Government of India has approved the import of genetically modified soybean oil at concessional or concessional duty rates, recognizing the need to manage edible oil inflation and domestic shortage. Given that GM-origin soybean derivatives have already entered the country in the form of oil, a consistent policy approach towards soybean meal may be considered, especially when high domestic prices constrain feed affordability.
What could be a better way to unlock feed access for the sector?
Reliable, high-quality feed acts as a catalyst in the value chain. Consistent protein allows producers to achieve stable FCR, reduce herd variability and improve cost forecasting, making scale and expansion more viable. This efficiency supports contract farming and integrated operations.
For processors, restaurants and institutional buyers, predictable feed economics ensure consistent quality and assured quantity, supporting investment in processing, cold storage and branded products. Improved feed efficiency also enhances export readiness for markets requiring traceability and standardized standards.
A stable feed environment encourages investment in milling, storage and logistics, reduces seasonality and spoilage and attracts private capital, strengthening competitiveness and long-term growth in the sector.
Challenges and practical way forward
India’s poultry sector faces structural challenges: price volatility in maize and soybean, periodic disease outbreaks and limited oilseed processing capacity. Consistent nutrition and feed management is important to maintain herd health and performance.
Coordinated measures are needed to address these. Expansion of crushing capacity, modernization of mills, silos and storage, and calibrated imports can stabilize supply during shortages. Diversified sourcing from trusted international suppliers minimizes risk. Combined with domestic value-chain investments, these strategies minimize disruption.
As poultry consumption accelerates towards 2040, selective imports will remain essential, balancing self-reliance with flexibility and positioning India’s poultry sector for long-term, globally competitive growth.
(The author is Chairman of the CII Committee on Animal Agriculture. Naveen Pasuparthy, President, Karnataka Poultry Farmers and Breeders Association (KPFBA), Vice President, CLFMA of India and Ricky Thapar, Joint Secretary, Poultry Federation of India also contributed.)
Published on February 21, 2026
