India’s livestock sector is central to the country’s agricultural and economic landscape. It supports millions of livelihoods by generating employment, income, and nutritional security.
Poultry and livestock also provide essential inputs for sustainable farming, strengthening national food security.
India’s poultry industry is currently valued at USD 30 billion and engages more than six million people. Over the past decade, it has grown rapidly, becoming one of the world’s most efficient producers of broiler meat and eggs. This success stems from integrated companies, contract farming, and a strong domestic market.
Rising demand and feed challenges
Livestock—including dairy, poultry, fisheries, and allied sectors—is expanding faster than crop agriculture (soybean and corn). Yet concerns remain about whether domestic feed production can keep pace. Limited arable land and productivity gaps constrain supply, while price volatility threatens stability.
The Confederation of Indian Industry (CII) in its vision document 2047 mentions that the poultry sector is growing at a healthy rate of 8% annually and could see further acceleration.
Sustaining this trajectory depends heavily on the availability and affordability of quality feed ingredients. Feed costs already account for 60–65% of animal husbandry expenses, making volatility a direct driver of rising production costs and consumer prices.
Trade deal opens door to stable feed
The recently announced India-US interim trade agreement offers relief by reducing or eliminating duties on items from the US such as dried distillers’ grains (DDGS) and red sorghum. This will likely ensure steady supplies of animal feed in coming years.
Commerce Minister Piyush Goyal said that India will provide quota-based duty concessions on US DDGS under the deal.
Feed demand is projected to outpace domestic supply, making large scale imports necessary by the early 2030s. Domestic production of energy sources like corn and protein sources such as soymeal often falls short of the growing needs of poultry, dairy and fisheries. Local feed supply is increasingly constrained by limited arable land and productivity gaps.
Feed costs account for 60-65% of total expenses in animal husbandry. Any volatility in feed prices quickly raises production costs, which in turn drives consumer prices higher.
Thus, feed imports, especially of reduced or zero duty imports of soybeans and/or soybean meal and maize, can help bridge the demand-supply gap. Reliable sources such as US soy ensure consistent, high-quality protein during periods of domestic shortage.
Used judiciously, imported soy can help ease feed costs, improve formulation consistency, and enable feed manufacturers to meet the quality benchmarks demanded by large integrators and processors.
Feed ingredient supply and rising feed demand
With increase in income and urbanization as demand for dairy and poultry products increases, according to the United States Department of Agriculture (USDA) in its report titled ‘The growing demand for animal products and feed in India’, at the current growth in the productivity of maize and soybean, would not be able to meet rising demand of feed.
“By ensuring a timely and cost-effective supply of these essential feed ingredients, the government is directly addressing the challenge of feed inflation. This will not only stabilize production costs for farmers but also ensure that high-quality protein remains affordable.”
Concerns over soybean meal and corn
Several national and state level poultry associations have raised their concerns over soybean meal shortages and rising prices to Shri Rajiv Ranjan Singh, Union Minister of Animal Husbandry, Dairying and Fisheries, Government of India. These challenges pose risks to poultry production and threaten the sector’s stability.
The sector fears a crisis, which can severely affect livestock production and consumer prices. With nearly seven months until the next domestic soybean harvest, sustaining poultry production at viable costs will be difficult. This shortfall will directly impact egg and chicken prices, adding pressure to overall inflation.
Corn prices have also become volatile, driven not only by feed demand but also by its growing use in ethanol and other industries. These pressures highlight the urgent need for stable, cost-effective feed supplies.
Ensuring sustainable feed supplies
India’s population is around 1.4 billion and is projected to be approximately 1.53 billion by 2047. This increase in population will drive higher demand for food including eggs and chicken.
Annual per capita poultry meat and eggs are expected to be 15kg and 200 eggs by 2047. Meeting this demand will require around:
- 38 million tons of broiler feed and 34 million tons of layer feed
- 90 million tons cattle feed, at 30% penetration rate
- 7 million tons of fish and shrimp feed
Ensuring sustainable feed supplies in coming years will be a critical challenge for India’s livestock sector. By ensuring cost-effective supply of feed ingredients, the government can directly address the challenge of feed inflation.
Such measures will help poultry, dairy, and aquaculture farmers maintain viable operations while keeping high-quality protein affordable for consumers.
The interim deal with the US offers a timely opportunity to import key feed ingredients, supporting the long-term growth and sustainability of India’s poultry industry.