Milk Prices Goes up as Flush Season Does Not Increases Output

In India, milk prices are seeing a rise and this is against the normal trend when prices fall during the winter season.

A period from October-March has not contributed to the availability of milk to peak as the flush season and thus milk diaries are forced to pay more. And if the global demand forecasts are to be observed, the prices of milk and milk products will shoot up in the coming months.

In domestic markets, dairies sell skim milk powder for Rs 245-255 per kg, compared to prices of 180-190 in September and Rs 140-150 in July 2020. Also, ex-factory cow butter and desi ghee rates are at Rs 305-310 and Rs 400 per kg, respectively, for milk fat levels.

This amounted to Rs 260-270 in September and Rs 340-350/kg in September and this is also true for milk prices, as demonstrated in Maharashtra by the provision of cow's milk (3.5% fat and 8.5% non-fat solids) at Rs 27-28 per litre, compared to Rs 18-20 in July and Rs 24-25 in September.

This is largely an influence of the Covid 19 as farmers resorted to lower feeding of their cattle in the middle of market disruption and price crash.

For three reasons, the mismatch is likely to prevail, i.e. few dairies only keep ample stocks of powder and fat, the second is foreign pricing that makes exports more feasible and the third is the inaccessibility of the farmer to artificial insemination services.