El Niño-related weather conditions are raising concerns over agricultural production in India, with the impact potentially reaching consumers through higher food prices. After sugar, prices of eggs and chicken are also witnessing a sharp rise, according to market trends.
El Niño is associated with changes in rainfall patterns and can affect the monsoon in India. Lower or irregular rainfall can reduce soil moisture and adversely affect crop production. This, in turn, can increase the cost of agricultural commodities and animal feed.
Sugar prices have already come under pressure amid concerns over lower sugarcane production. Experts are also watching maize production closely because maize is an important component of poultry feed. If maize output declines significantly, feed costs could rise further, potentially putting additional pressure on egg and chicken prices.
Other major crops, including rice and soybean, may also be affected if El Niño conditions lead to inadequate or uneven rainfall. Soybean is another important agricultural commodity, while changes in the availability and price of feed crops can have a wider impact on the poultry sector.
El Niño can contribute to weaker monsoon conditions and irregular rainfall in parts of India. Higher temperatures and lower soil moisture can create additional stress for crops, particularly in areas dependent on rainfall.
If agricultural production is affected across multiple crops, supply constraints could add to food inflation. Consumers may therefore continue to face pressure on their household budgets, particularly if higher feed and production costs are passed on through the poultry supply chain.
However, the extent of the impact will depend on actual rainfall, crop production, feed availability and market conditions in the coming months.