Why egg, chicken and milk prices are unlikely to fall soon
The article analyzes the reasons behind the sustained high prices of eggs, chicken, and milk in India, primarily attributing it to the spiraling costs of livestock feed ingredients like maize and soyabean meal. It highlights the growing contribution of the livestock sector to India's gross value added (GVA) and details how rising feed costs, influenced by factors like El Niño, reduced kharif acreage, and potential diversion for ethanol production, are shrinking farmer profit margins and driving up retail prices. The article also touches upon the government's ethanol blending targets and the potential conflict with ensuring adequate feed grain availability.
The article analyzes the reasons behind the sustained high prices of eggs, chicken, and milk in India, primarily attributing it to the spiraling costs of livestock feed ingredients like maize and soyabean meal. It highlights the growing contribution of the livestock sector to India's gross value added (GVA) and details how rising feed costs, influenced by factors like El Niño, reduced kharif acreage, and potential diversion for ethanol production, are shrinking farmer profit margins and driving up retail prices. The article also touches upon the government's ethanol blending targets and the potential conflict with ensuring adequate feed grain availability.
Exam linkage
GS-III: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Major crops - cropping patterns in various parts of the country, - different types of irrigation and irrigation systems storage, transport and marketing of agricultural produce and issues and related constraints; e-technology in the aid of farmers. Issues related to direct and indirect farm subsidies and minimum support prices; Public Distribution System- objectives, functioning, limitations, revamping; issues of buffer stocks and food security; Technology missions; economics of animal-rearing.
Syllabus mapping
This topic appears in Mains
Questions on Indian Economy come up regularly in GS papers. Practice writing an answer — and see exactly what earns marks.
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