India's poultry industry revenue drives up by over 30% to Rs. 2,500 billion (US$ 31.4 billion)

According to Crisil Ratings, revenue of the Indian poultry industry has increased over 30% to Rs. 2,500 billion (US$ 31.4 billion) in FY 2022-23 so far, driven by higher realisation and steady volume.

Poultry capacity growth was limited during the last two fiscal years because of the pandemic. As a result, the growth in consumption of meat and eggs over 2021 was just 5% and 4% at 4.3 lakh tonne and 120 billion, respectively. Poultries have been operating at close to full capacity utilisation due to the demand remaining strong and an increase in population, higher per capita meat consumption, and increasing desire for diets high in protein.

Additionally, demand is outstripping supply in the hotels, restaurants, and cafes (HORECA) sector, which has caused the wholesale price of broiler chicken to increase. In FY 2022-23, the average price of broiler meat is expected to be between Rs. 135-140 (US$ 1.69-1.75) per kg.

However, due to a shortage of supplies, the price of maize and soymeal, two essential chicken feeds, has increased by approximately 35% and is unlikely to decrease this year. As a result, margins will decline for a second consecutive fiscal year.

Due to high demand and nearly full capacity utilisation, poultry production is expected to expand by 12% in FY 2022-23. Given that setting up and making these facilities completely operational takes just 3-6 months, these capacities are likely to start operating early next fiscal.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.