What is the Cost of Production of Eggs in India?

Time : 2024-07-11

Producing eggs in India can be a profitable venture if managed correctly, with a detailed understanding of the costs involved. This guide will provide insights into the cost of production of eggs in India, exploring various factors such as the setup costs, ongoing expenses, and the potential revenue. We will also highlight the contributions of top poultry companies in India, and consider the impact of using high-quality poultry equipment from reputable manufacturers like LIVI Poultry Equipment Factory.

Initial Setup Costs

Land and Infrastructure

The first major expense when starting a poultry farm business in India is acquiring land and setting up the necessary infrastructure. The cost can vary significantly depending on the location and size of the farm.

  • Land Cost: Depending on the region, land prices can range from INR 5,00,000 to INR 15,00,000 per acre.
  • Infrastructure: Building chicken coops, feed storage, and other essential structures can cost between INR 2,00,000 to INR 10,00,000. This includes the cost of constructing shelters, installing fencing, and setting up waste management systems.


Investing in high-quality poultry equipment is essential for the efficient operation of the farm. LIVI Poultry Equipment Factory, established in 1990, offers a range of affordable and durable chicken cage systems that can significantly enhance productivity.

  • Chicken Cage Systems: Depending on the type and capacity, the cost of A-type laying hen cages, H-type laying hen cages, and other systems can range from INR 1,000 to INR 5,000 per cage.
  • Feeding and Watering Systems: Automated feeders and waterers ensure that chickens have constant access to food and water, reducing labor costs and minimizing waste. These systems can cost between INR 50,000 to INR 2,00,000.
  • Climate Control Systems: Proper ventilation, heating, and cooling systems are crucial for maintaining an optimal environment for the hens. These systems can cost between INR 50,000 to INR 3,00,000.

Ongoing Operational Costs

Feed and Nutrition

Feed is one of the most significant recurring expenses in egg production. Providing a balanced diet is crucial for the health and productivity of the laying hens.

  • Cost of Feed: On average, feed costs around INR 25 to INR 30 per kg. Monthly feed expenses for a medium-sized farm can range from INR 50,000 to INR 2,00,000, depending on the number of hens.


Hiring skilled labor is essential for the smooth operation of the poultry farm. Labor costs can vary based on the region and the size of the farm.

  • Labor Costs: Monthly salaries for farm workers range from INR 10,000 to INR 20,000 per worker. For a medium-sized farm, you might need 5 to 10 workers, resulting in monthly labor costs of INR 50,000 to INR 2,00,000.

Healthcare and Biosecurity

Maintaining the health of the flock is crucial for sustained productivity. This includes regular veterinary check-ups, vaccinations, and biosecurity measures.

  • Healthcare Costs: Monthly healthcare expenses can range from INR 5,000 to INR 20,000, including vaccinations and medications.
  • Biosecurity Measures: Implementing biosecurity measures such as disinfection and pest control can cost around INR 5,000 to INR 10,000 per month.

Revenue and Profitability

Egg Production and Pricing

The revenue generated from egg production depends on the number of hens, egg production rate, and market prices. Understanding the poultry farm egg price in India is essential for calculating potential revenue.

  • Egg Production: On average, a laying hen produces around 250 to 300 eggs per year. For a farm with 1,000 hens, this translates to 2,50,000 to 3,00,000 eggs annually.
  • Poultry Farm Egg Price in India: If the market price of eggs is INR 5 per egg, annual revenue from eggs can be INR 12,50,000 to INR 15,00,000.

Subtracting the annual operational costs from the total revenue gives an estimate of the annual profit:

  • Total Annual Revenue: INR 12,50,000 to INR 15,00,000.
  • Total Annual Costs: INR 6,00,000 to INR 24,00,000 (including feed, labor, healthcare, and biosecurity).
  • Annual Profit: INR -11,50,000 to INR 9,00,000 (Note: Initial years may show a loss due to high initial investments. Profitability improves as the farm scales up and operational efficiency increases).

Case Study: Top Poultry Companies in India

India is home to several top poultry companies that have set benchmarks in the industry through their innovative practices and use of advanced technology. These companies offer valuable insights and models for new entrants looking to start a poultry farm business in India.

Suguna Foods

Suguna Foods is one of the largest poultry companies in India, known for its integrated operations from breeding to processing. Their focus on quality, innovation, and sustainability has made them a leader in the industry.

  • Integrated Operations: Suguna Foods manages the entire supply chain, ensuring quality control and efficiency at every stage.
  • Technology and Innovation: The company invests in advanced technology and research to improve productivity and sustainability.

Venkateshwara Hatcheries

Venkateshwara Hatcheries, popularly known as Venky’s, is another leading poultry company in India. They are pioneers in poultry breeding, feed production, and processing.

  • Breeding Excellence: Venky’s is renowned for its high-quality broiler and layer breeds, which are widely used by poultry farmers across India.
  • Comprehensive Solutions: The company provides a range of solutions, including feed, vaccines, and equipment, to support poultry farmers.


The cost of production of eggs in India involves various components, from the initial setup costs to ongoing operational expenses. By carefully planning and managing these costs, poultry farmers can achieve profitability and sustainability in their operations. Investing in high-quality equipment from manufacturers like LIVI Poultry Equipment Factory can significantly enhance productivity and efficiency, making it easier to navigate the challenges of egg production.

With the support of top poultry companies in India and a focus on best practices, new entrants can successfully start a poultry farm business in India and contribute to the growing demand for eggs in the market.


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