Food inflation in India will probably accelerate in the coming months on stronger prices, chickens following poor supplies, according to a top official of the nation’s biggest animal-feed company.
Weaker prices of animal protein due to poor demand from bulk users like hotels and banquets, which account for one-third of total consumption, during the coronavirus-related restrictions discouraged farmers to invest in expansion, causing a tightness in the market, said Balram Yadav, managing director of Godrej Agrovet Ltd.
Chicken prices are seen surging 18% to 20% in the next six to eight months from an estimated average for the January-March quarter, while rates for eggs could climb 7% to 8%.
India’s $14 billion poultry industry provides direct and indirect employment to five million people and supports more than 25 million farmers. With an annual output of 95 billion eggs, India ranks second in the world.
Source: BUSINESS STANDARD