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India’s poultry and egg industry is facing a difficult phase as exports to Gulf countries slow sharply amid the ongoing West Asia crisis. While overseas demand has weakened, excess supply in the domestic market is now dragging egg prices lower across several cities.
Gulf Crisis Impacts India’s Poultry Trade
According to recent reports, India’s poultry and egg exports suffered a major setback in March 2026. Exports to the United Arab Emirates (UAE) reportedly fell by nearly 25%, while shipments to Oman plunged by more than 90%. Overall poultry exports from India declined by around 20% during the month.
The Gulf region remains extremely important for India’s poultry business, accounting for nearly 82% of the country’s total egg exports. Last year alone, India exported poultry products worth nearly $115 million to the UAE, while exports to Oman touched around $26.8 million.
However, tensions in West Asia, especially around Iran and the United States, have disrupted shipping movement near the Strait of Hormuz, affecting trade routes and export operations.
Namakkal Poultry Hub Faces Heavy Losses
The biggest impact is being seen in Namakkal, Tamil Nadu, India’s leading egg-producing region. A significant share of eggs from this belt is exported to Gulf nations through the V.O. Chidambaranar Port.
Traders and exporters are now struggling with container shortages, delayed shipping schedules, and soaring freight charges. Since the crisis escalated, ocean transport costs have risen sharply, adding further pressure on the industry.
At the same time, poultry farmers are also dealing with higher feed and fuel expenses. Prices of corn, soybeans, and other feed ingredients have increased, making poultry farming more expensive.
Why Egg Prices Are Falling In India
The slowdown in exports has resulted in a larger supply of eggs entering the domestic market. Eggs that were originally meant for Gulf countries are now being sold locally, increasing availability across Indian cities.
Reports suggest eggs were selling at nearly Rs 6.9 per piece in export markets, while domestic prices remained around Rs 5.3 per egg. As export demand weakened, traders redirected stock within the country, leading to softer retail and wholesale prices.
Consumers may currently benefit from cheaper eggs, but the situation is becoming challenging for poultry farmers and exporters.
Industry Worried About Long-Term Pressure
Experts believe the poultry sector could face deeper stress if the West Asia crisis continues for an extended period. Declining exports combined with rising production costs are squeezing profit margins for farmers.
The industry is now hoping for stability in shipping routes and improved demand from Gulf countries in the coming months. A recovery in exports could help balance supplies and support prices once again.
Until then, India’s poultry sector may continue to walk a tightrope between falling export demand and growing domestic pressure.
Gulf Crisis Impacts India’s Poultry Trade
According to recent reports, India’s poultry and egg exports suffered a major setback in March 2026. Exports to the United Arab Emirates (UAE) reportedly fell by nearly 25%, while shipments to Oman plunged by more than 90%. Overall poultry exports from India declined by around 20% during the month. The Gulf region remains extremely important for India’s poultry business, accounting for nearly 82% of the country’s total egg exports. Last year alone, India exported poultry products worth nearly $115 million to the UAE, while exports to Oman touched around $26.8 million.
However, tensions in West Asia, especially around Iran and the United States, have disrupted shipping movement near the Strait of Hormuz, affecting trade routes and export operations.
Namakkal Poultry Hub Faces Heavy Losses
The biggest impact is being seen in Namakkal, Tamil Nadu, India’s leading egg-producing region. A significant share of eggs from this belt is exported to Gulf nations through the V.O. Chidambaranar Port.You may also like
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Traders and exporters are now struggling with container shortages, delayed shipping schedules, and soaring freight charges. Since the crisis escalated, ocean transport costs have risen sharply, adding further pressure on the industry.
At the same time, poultry farmers are also dealing with higher feed and fuel expenses. Prices of corn, soybeans, and other feed ingredients have increased, making poultry farming more expensive.
Why Egg Prices Are Falling In India
The slowdown in exports has resulted in a larger supply of eggs entering the domestic market. Eggs that were originally meant for Gulf countries are now being sold locally, increasing availability across Indian cities. Reports suggest eggs were selling at nearly Rs 6.9 per piece in export markets, while domestic prices remained around Rs 5.3 per egg. As export demand weakened, traders redirected stock within the country, leading to softer retail and wholesale prices.
Consumers may currently benefit from cheaper eggs, but the situation is becoming challenging for poultry farmers and exporters.
Industry Worried About Long-Term Pressure
Experts believe the poultry sector could face deeper stress if the West Asia crisis continues for an extended period. Declining exports combined with rising production costs are squeezing profit margins for farmers. The industry is now hoping for stability in shipping routes and improved demand from Gulf countries in the coming months. A recovery in exports could help balance supplies and support prices once again.
Until then, India’s poultry sector may continue to walk a tightrope between falling export demand and growing domestic pressure.
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