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Inadequate cold chains, outdated infra, animal diseases - Key challenges
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Friday, 27 March, 2026, 16 : 00 PM [IST]
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Dr Venkatesh Ganapathy
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India's position as a global powerhouse in the meat and poultry sector is built on a formidable foundation of agricultural abundance and economic momentum. As the world's fastest-growing major economy and the largest producer of several key agricultural commodities, the nation offers fertile ground for agri-business. This potential is amplified by its status as the second-largest global consumer market, significant investments in modern ports and supply chain logistics, and a backdrop of proactive government policies and a skilled workforce.
India is home to the world's largest livestock population, producing approximately 5.3 million metric tonnes of meat and a staggering 75 billion eggs annually. It reigns as the largest global producer of buffalo meat and ranks second in goat meat production. The most significant potential for investors and entrepreneurs, however, lies not just in raw output but in the substantial gap between production and formal processing. Currently, only 6% of poultry and 21% of meat undergo organised processing. This low penetration indicates immense room for growth, especially as Indian consumers increasingly demand clean, safe, and hygienic meat products.
India's meat production reached 10.50 million tonnes in 2024-25, a 29% increase since 2018-19. The poultry sector is dominant, contributing nearly half of this output and growing by 16% over five years. Geographically, production is concentrated, with just five states accounting for over 57% of the national supply, and categories are regionalised; for instance, Andhra Pradesh and Telangana produce two-thirds of India's sheep meat.
Production within India is regionally specialised, with distinct hubs leading the way. The southern and western states of Andhra Pradesh, Tamil Nadu, and Maharashtra are the country's top egg producers. For overall meat production, Uttar Pradesh is the undisputed leader, contributing 23% of the national total, followed by West Bengal and Andhra Pradesh. The northern belt, featuring Haryana, West Bengal, and Uttar Pradesh, dominates in poultry meat production. This growth is fuelling demand across the entire value chain, creating opportunities for technology suppliers in areas like cold chain solutions and modern abattoir equipment, and for industry players to innovate with value-added products, advanced feed formulations, and hatchery expansion. Furthermore, strong international demand is signalled by meat and poultry exports valued around US$5 billion, with key markets in South East Asia and the Middle East.
India's poultry sector remains a global powerhouse, now ranking 3rd in egg production (138.38 billion eggs) and 6th in poultry meat output (9.77 million tonnes). The industry's value has surged, with the market estimated at US$28.18 billion in 2023 and projected to reach US$44.97 billion by 2032. The India poultry market size reached Rs 2.30 trillion in 2024. Looking forward, the research expects the market to reach Rs 8.43 trillion by 2033, exhibiting a growth rate (CAGR) of 12.60% during 2025-2033. The expanding population across the country, increasing demand for poultry products, changing consumer dietary preferences, rising disposable incomes, and rapid growth in the food service sector are among the key factors driving the market growth. However, the sector must navigate persistent challenges, including volatile feed costs, disease management like avian influenza, and the need for enhanced cold chain infrastructure to ensure sustainable expansion.
The Indian poultry sector's greatest opportunity is closing the gap between massive raw production and low formal processing rates. Growth is fuelled by strong domestic and export demand, supported by government policies and new export certifications for disease-free farms. Success hinges on investing in value-added products, technology (AI, blockchain), and overcoming challenges like cold chain gaps and volatile feed costs.
To expand exports, India must target premium markets and diversify its products. The recent disease-free certification for specific poultry compartments is a key asset, opening doors to regulated markets like Japan and the EU. Success here hinges on moving beyond bulk commodities to higher-margin, value-added processed items such as ready-to-eat meals and marinated products. Concurrently, leveraging India's established halal certification can strengthen its foothold in traditional Middle Eastern markets.
Several critical challenges must be addressed to realise this export potential. Scaling up the compartmentalisation model to certify more bio-secure farms is paramount. Significant investment in an unbroken, international-standard cold chain from farm to port is non-negotiable for product quality.
Technological integration is revolutionising the sector's foundation. On farms, IoT and automation optimise bird health and efficiency, while data analytics enable precision management. Advancements in genetics and health increase yields and support disease control. Across the supply chain, technologies like blockchain ensure traceability and compliance, directly enabling the transparency required for high-value exports and building a more resilient, productive industry.
Technology is the enabler for export growth. The data integrity from smart farms supports the traceability required for compartmentalisation. Efficient, tech-driven production creates the consistent quality and surplus needed for international trade. For investors and entrepreneurs, the greatest opportunities lie at this intersection of cutting-edge agri-tech and global market access.
Despite its success, the industry faces critical challenges, including a lack of skilled labour, difficulties in disease diagnosis and management, and bureaucratic hurdles in securing multiple government approvals for new farms. The future remains promising, driven by rising demand, technological adaptation, and the expansion of rural backyard poultry farming, provided these constraints are addressed.
A key strategic shift is the recent WOAH approval for 26 disease-free poultry compartments. The WOAH (World Organisation for Animal Health) approval certifies that specific, high-biosecurity poultry farms in India are free from major diseases like bird flu. This allows India to export poultry from these certified "compartments" to strict international markets, even if outbreaks occur elsewhere in the country. This moves the focus from national disease status to certified, bio-secure farm-level production, opening access to premium international markets. Sustainable growth will rely on modernising supply chains, leveraging technological advancements, and continued government support through schemes like the Poultry Venture Capital Fund (PVCF).
Despite being a major global producer and the world's largest exporter of buffalo meat, the industry faces significant challenges. These include inadequate cold chains, outdated infrastructure, animal diseases, and volatile feed prices. Furthermore, a mismatch exists between production hubs and local consumption. The path to overcoming these hurdles and unlocking greater export potential, particularly for poultry, is becoming clearer.
(The author is an educator in business management)
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