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How a Fuel Policy and a Weak Monsoon Are Affecting Your Chicken Prices

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How a Fuel Policy and a Weak Monsoon Are Affecting Your Chicken Prices

Drought and rising demand for ethanol are pushing up poultry feed costs, putting pressure on meat retailers and consumers.

Chicken prices could face further pressure in the coming months as poultry producers deal with rising feed costs and limited supplies of maize, a key ingredient in chicken feed.

The problem has two major causes: poor monsoon rainfall has affected maize crops in several regions, while the growing demand for ethanol production is adding competition for the same crop. With less maize available and more buyers competing for it, poultry farmers are paying more to feed their birds.

According to industry estimates reported by Mint, maize makes up around 55–65% of broiler chicken feed by weight. The price paid by poultry farmers rose to ₹27–28 per kg in late September, compared with ₹12–14 per kg in 2019. This increase is making it more expensive to raise chickens.

Why is maize becoming expensive?

Maize is used for several purposes, including animal feed and ethanol production. Ethanol is blended with petrol as part of India’s efforts to reduce dependence on conventional fuels.

However, the weak monsoon has affected crop production in some states, including Karnataka. Nandu’s, a meat retailer, estimates that maize production in Karnataka has fallen by around 25% this season.

To make up for the shortage, supplies are being brought in from states such as Bihar, Uttar Pradesh and Maharashtra. But these additional supplies have not removed the pressure on prices.

Higher energy and transportation costs are also adding to the overall cost of producing and distributing poultry products.

How are meat retailers dealing with the increase?

Rising costs are putting pressure on businesses that sell chicken and other meat products. Retailers now face a difficult choice: increase prices for customers or absorb some of the additional expenses and earn lower profits.

Zappfresh, a meat brand operated by DSM Fresh Foods, has increased chicken prices by around 5% after its procurement costs rose by about 10%. The company has absorbed part of the increase, which has reduced its profit margins.

Other businesses are trying to keep prices stable because customers are sensitive to price increases. TenderCuts, for instance, has been dealing with higher input and logistics costs while making selective price adjustments.

The pressure could continue over the next few months, especially as demand for meat typically picks up after Navratri and remains stronger through the winter season.

What does this mean for consumers?

When poultry feed becomes more expensive, raising chickens costs more. Producers and retailers may eventually pass some of these costs on to customers through higher prices.

The impact is already visible in the cost of a home-cooked non-vegetarian meal. According to Crisil Intelligence, the average cost of a non-vegetarian thali rose to ₹59.50 in September, up 6% from a year earlier and 3% from August.

However, higher feed costs do not automatically mean that chicken prices will rise by the same amount. The final price depends on several factors, including supply, consumer demand, transportation costs and how much of the increase businesses choose to absorb.

For consumers trying to manage their household budgets, this is another food-cost pressure to watch, especially during a period when several everyday expenses are already rising.

How It All Connects 

The situation highlights how weather conditions and fuel policies can affect the cost of everyday food.

When drought reduces crop supplies and ethanol producers compete with poultry farmers for maize, the resulting shortage can increase the cost of animal feed. That pressure can then travel through the supply chain, affecting meat businesses and potentially the prices paid by consumers.

For now, poultry producers and retailers are trying to manage higher expenses without losing customers. But if maize supplies remain tight and feed costs continue to rise, the pressure on the chicken market could persist in the coming months.

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The ₹80,000 Phone: A Status Symbol or a Financial Mistake?

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For young earners, buying an expensive smartphone can feel like a reward for hard work. But when does the desire to look successful start getting in the way of building wealth?

The first salary brings a new kind of freedom. A young professional can finally buy things without asking for money. And often, the first big purchase is a smartphone.

Friends are flaunting their latest devices, Instagram is flooded with unboxing videos and a perfectly functional phone suddenly feels outdated. An ₹80,000 smartphone starts looking less like an expense and more like a reward for all the hard work.

But there is a difference between buying something because it adds value and buying it because it makes life look better to others.

India’s premium smartphone obsession

India’s smartphone market is moving towards premium devices. According to Counterpoint Research, smartphones priced above ₹30,000 accounted for 22% of smartphone shipments in India in 2025, their highest ever share.

A July 2026 Counterpoint Research survey also found that 46% of prospective smartphone buyers in India were willing to stretch their budgets to purchase their preferred phone despite price increases. Among consumers aged 25 to 30, the figure was 52%.

These numbers do not mean everyone buys expensive phones for status. Better cameras, performance and software support can justify the premium. However, they highlight how willing consumers can be to spend beyond their original budgets for a device they desire.

For young professionals still building their savings, this creates a dilemma: should the money go towards a premium phone or towards financial security?

What does an ₹80,000 phone actually cost?

Consider someone earning ₹40,000 a month and choosing between a ₹15,000 smartphone and an ₹80,000 device.

The premium phone costs twice their monthly salary before deductions. The budget alternative costs less than half of one month’s salary.

The difference is ₹65,000. That money could help build an emergency fund, pay for professional training or contribute towards future investments.

Of course, a premium phone may offer better features and a longer useful life. The point is not that expensive phones are always a bad purchase. It is whether the additional benefits justify the additional cost.

The EMI trap

Monthly instalments can make an expensive purchase feel manageable. Instead of thinking about ₹80,000, buyers focus on a smaller monthly payment.

But an affordable EMI does not automatically make a purchase financially sensible.

If repayments leave little money for savings, rent or other priorities, the phone may be stretching the budget more than it appears. Interest and fees can also increase the total cost.

The real cost of keeping up

The phone that attracts compliments today may become ordinary tomorrow. A newer model arrives, attention shifts and the excitement fades. The money spent, however, does not return.

For someone whose main motivation is social recognition, this creates an uncomfortable trade off. The owner bears the full cost while the approval may last only a short time.

Choosing a budget phone and keeping the ₹65,000 difference could create room for savings, experiences or investments. For illustration, ₹65,000 invested at an assumed annual return of 10% could grow to approximately ₹1.05 lakh over five years, before taxes and charges. Actual returns are not guaranteed.

So, should young earners buy budget phones?

Not necessarily. A premium phone can be worth the money when its features genuinely matter and the purchase fits comfortably within the buyer’s finances.

But before upgrading, it helps to ask: is the phone being purchased for its usefulness or because everyone else seems to have one?

Affordable smartphones have expanded the choices available to consumers. For everyday needs such as messaging, digital payments, browsing and streaming, a budget device may be sufficient.

A smartphone can signal purchasing power, but it cannot tell anyone how financially secure its owner really is.

The real flex is not owning the most expensive phone. It is being able to afford the things that matter without sacrificing the financial freedom that makes them possible.

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India-US Trade Pact Enters Final Drafting Stage

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India-US Trade Pact Enters Final Drafting Stage

The first phase of the India-US trade agreement is in the final stages of legal drafting, with India seeking better market access and a competitive advantage for its exporters.

India and the United States are moving closer to finalising the first phase of their bilateral trade agreement, Commerce and Industry Minister Piyush Goyal said on Thursday. The agreement is currently undergoing legal drafting, with the government hoping to complete the process soon.

However, India wants to ensure that the deal gives its exporters a competitive advantage over businesses from other countries before it is implemented.

What Is the Latest Update?

According to Goyal, the first tranche of the India-US trade agreement has been finalised and is now going through the final stages of legal drafting.

Commerce Secretary Rajesh Agrawal also said negotiations were progressing in the right direction, with both countries working towards concluding and signing the agreement at the earliest.

However, the final timeline depends partly on the United States formalising its broader tariff framework. India is also seeking greater stability in tariffs and preferential access to the American market so that Indian exporters can compete effectively with businesses from other countries.

Why Does India Want a Competitive Advantage?

The US is India’s largest destination for merchandise exports, making trade terms between the two countries important for Indian businesses.

Preferential market access could help Indian exporters compete more effectively in the US by improving the tariff conditions under which their goods enter the market.

For example, if Indian products face lower tariffs than similar products from competing countries, they could become more attractive to American buyers. This could potentially help Indian businesses expand exports and secure new orders.

India is therefore looking beyond simply signing an agreement. It wants terms that allow its exporters to compete on favourable footing in the American market.

What Happens Next?

While the first phase has reached the legal drafting stage, some steps remain before the agreement can be signed and implemented. These include aligning the deal with the broader US tariff framework and resolving the remaining issues.

Separately, Goyal said the India-European Union free trade agreement is expected to be signed in December 2026 and could come into force in February or March 2027.

For India, these trade negotiations form part of a wider effort to strengthen international trade ties and improve opportunities for domestic businesses.

Source: The Economic Times 

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IPO Watch

Jio IPO 2026: How the ₹30,213 Crore Issue Will Use Its Funds

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Jio IPO 2026: How the ₹30,213 Crore Issue Will Use Its Funds

Unlike several major IPOs where existing investors sell their stakes, Jio Platforms’ upcoming public issue will raise fresh capital for the company, with most of the proceeds earmarked for debt repayment.

India’s IPO market is gearing up for a major milestone. Jio Platforms, the digital services arm of Reliance Industries, is preparing to launch a ₹30,213 crore initial public offering (IPO), which could become the country’s largest-ever public issue.

But the size of the offering is not the only thing setting it apart. The structure of Jio’s IPO makes it different from several large listings seen in India over the past few years.

A Fresh Issue, Not an Investor Exit

Jio Platforms’ IPO will consist entirely of newly issued shares, with no offer-for-sale (OFS) component. This means existing shareholders will not be selling their shares as part of the public issue.

In an OFS, existing investors or promoters sell some of their holdings to public investors. The money from that sale goes to the shareholders selling their stakes rather than to the company itself.

A fresh issue works differently. The company creates and issues new shares to raise capital, which it can then use for specified business purposes.

For Jio Platforms, this means the funds raised through the IPO will go to the company, rather than serving as an exit route for its existing investors, including Reliance Industries, Meta and Google.

Where Will the IPO Money Go?

A significant portion of the proceeds will be used to repay or prepay borrowings of Reliance Jio Infocomm, Jio Platforms’ telecom subsidiary.

The company has earmarked up to ₹27,500 crore of the net proceeds for this purpose, with the remaining funds intended for general corporate purposes. At the upper end of the IPO’s price band, the debt repayment allocation accounts for approximately 91% of the total issue size.

Reducing debt can help lower interest expenses and strengthen a company’s balance sheet. For Jio, the proposed repayment could support its financial position as it continues to expand its digital and telecom businesses.

When Is the IPO Opening?

Jio Platforms has fixed a price band of ₹1,065 to ₹1,119 per share. The public issue is scheduled to open on October 21 and close on October 23, 2026, with anchor investor bidding planned for October 19.

At the upper end of the price band, the company could raise ₹30,213 crore, surpassing Hyundai Motor India’s ₹27,859 crore IPO in 2024.

The offering values Jio Platforms at approximately ₹10.3 lakh crore, making it one of the most significant listings in India’s capital markets.

A Growing Business Heads to the Stock Market

The IPO comes as Jio Platforms continues to expand its presence across telecommunications and digital services. In FY26, the company reported revenue from operations of approximately ₹1.47 lakh crore, while its net profit rose to ₹30,049 crore.

Its subscriber base has also grown substantially since Reliance Jio entered the telecom market in 2016, disrupting the industry with affordable data and voice services.

The listing will give public-market investors an opportunity to invest directly in Jio Platforms and provide a market valuation for Reliance Industries’ digital business.

For investors, however, the size of an IPO alone does not determine whether it is a suitable investment. The company’s valuation, financial performance, future growth prospects and risks all matter when evaluating a public issue.

Source: Moneycontrol

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