The most critical headwind is the feed conundrum, which has transformed from a growth driver into a bottleneck. India’s feed exports plummeted 20% to $2.3 billion in 2024 after peaking at $3 billion the prior year, largely due to a government ban on de-oiled rice bran (DORB) exports. Compounding the issue, the ethanol blending program is diverting 5–6 million tonnes of maize from compound feed (consumed by over 80% of poultry and dairy) to fuel production. This diversion is escalating prices, eroding export competitiveness, and allowing competitors like Argentina and Brazil to gain critical market share.

The poultry and egg sector, producing over 120 billion eggs annually, presents a major missed opportunity in value addition. Most eggs are sold raw, bypassing the US$3.8 billion global egg powder market that demands processed, shelf-stable products. According to Srirup Mohan Goswami of Genex, the biggest hurdles are prohibitive infrastructure costs, as processing plants require expensive RCC-certified structures and compliance with strict international norms like US FDA and EU PED. This financial barrier severely discourages necessary investment from small and medium enterprises (MSMEs) needed to exploit the export goldmine.

Compounding the problem is an urgent fodder security crisis linked to slow adoption of modern practices. Despite having one of the world’s largest cattle populations, India’s livestock productivity is low due to poor nutrition. Silage—a superior, fermented feed—can ensure year-round availability, but farmer acceptance is weak due to reliance on traditional dry fodder, which lacks adequate nutrition. Piyush Agarwal of Cornext noted that while the silage industry grows at a 15% CAGR, policy support remains patchy; some states subsidize it while others do not, creating an uneven transition toward high-nutrition cattle feed.