India’s poultry industry is undergoing a strategic transformation, shifting its focus from export-driven growth to strengthening its presence in the domestic market. This transition is largely motivated by rising production costs and the immense, yet underutilized, demand for protein across the nation. The topic became a central theme of discussion ahead of the 17th Poultry India Expo in Hyderabad.
Tarun Sridhar, former Secretary of the Union Ministry of Animal Husbandry, Dairying, and Poultry, pointed out that although India holds the position of the second-largest egg producer globally, its export performance remains relatively weak—standing around 25th or 26th place worldwide. Sridhar explained that prioritizing the domestic market makes sound economic sense: “When the domestic demand yields better returns, there is no compelling reason to look overseas.” He further stressed that exports should emerge naturally from growth and not serve as the sole objective of the industry.
Rising Domestic Consumption Potential
While India ranks among the world’s top five meat-producing countries, its per capita meat consumption remains very low compared to international averages. Naveen Pasuparthy, President of the Karnataka Poultry Farmers & Breeders Association (KPFBA), described this disparity as the country’s “protein deficit.” He observed that despite over 70% of the Indian population consuming poultry, the average yearly consumption of chicken and eggs remains far below the global norm. Pasuparthy emphasized that this untapped domestic demand presents enormous opportunities for growth, making it more rational to focus inward rather than chase export markets.
Hurdles: High Costs and Weak Infrastructure
India’s limited success in global markets is primarily due to high feed costs and inadequate infrastructure. Feed ingredients like corn cost nearly twice as much domestically as they do in major exporting countries, while soybean meal is roughly 30% pricier.
Moreover, the sector faces a shortage of modern processing units, efficient cold storage systems, and world-class hygiene standards, all of which are essential to meet global export requirements.
To counter these challenges, agricultural economist Ashok Gulati has suggested creating Export Processing Zones (EPZs) that would permit duty-free imports for export-oriented operations. He believes this could improve India’s export competitiveness by reducing input costs. However, Gulati cautioned that such measures would only be effective if supported by deeper structural reforms and enhanced operational efficiency across the poultry industry.
In conclusion, India’s poultry sector appears to be taking a sustainable, home-centered approach—prioritizing the nation’s nutritional needs and internal market expansion over an aggressive pursuit of exports.
