Milk Prices Surge As Flush Season Does Not Increases Production; Prices To Go Still Higher

Milk prices in India see a surge and this is against the usual trend when prices decline during winter season. As the flush season a period from October-March has not resulted in milk supply to peak and consequently milk diaries are forced to pay more. And if global market indicators are to be followed, milk and milk product prices are to shoot higher in the months to come.

In the domestic markets, dairies are selling skim milk powder for Rs 245-255 per kg in comparison to a price 180-190 in September and the Rs 140-150 lows touched in July 2020. Also, for milk fat prices, ex-factory rates of cow butter and ghee are at Rs 305-310 and Rs 400 per kg, respectively. This in September month was at Rs 260-270 and Rs 340-350/kg in September. And this true for milk prices as well, which is evident in Maharashtra with procurement of cow milk (with 3.5 per cent fat and 8.5 per cent solids-not-fat content) at Rs 27-28 per litre, compared to Rs 24-25 in September and Rs 18-20 in July.

And this is primarily an effect of the Covid 19 as farmers amid destruction in demand and price crash, resorted to lower feeding of their cattle. And the mismatch is anticipated to prevail for three reasons, i.e. few dairies are only holding enough stocks of powder as well as fat, second international pricing that makes exports more viable and the third is the farmer's inaccessibility to artificial insemination services.

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