Milk prices to remain stable during next 6 to 12 months

PUNE: Amid cooling food inflation, dairy majors Gujarat Cooperative Milk Marketing Federation ( GCMMF), Parag and Hatsun Agro have said they expect milk prices to remain stable over the next six to 12 months, mainly due to low commodity prices and a substantial drop in export of milk powder.

“Milk prices are expected to remain stable for six months to a year as commodity prices have been ruling low,” said RS Sodhi, managing director of GCMMF, which markets its products under the Amul brand.

India is not only the largest producer of milk, but also its largest consumer. Most dairies had increased milk prices during the lean period of the summer season, taking ‘full fat’ milk to Rs 52/litre and double toned milk to Rs 38/litre.

India produces about 5 lakh tonnes of milk powder every year. Till about three years ago, it used to export about a fifth of it as ‘solid not fat’.However, a fall in global SNF prices has brought exports to a near standstill.

“SNF demand has been less as world prices have been ruling low,” said Devendra Shah, chairman and managing director of Parag Milk Foods, which sells cheese under the ‘Go Cheese’ brand.

CG Chandramogan, chairman and managing director of Hatsun Agro, a leading dairy from south India, too confirmed abundant supply of milk and resultant price stability.

Driven by bumper production of agricultural commodities like cotton, soyabean, maize, etc., cattle feed prices have been ruling on the lower side, bringing down production cost of milk and increasing the productivity of cattle.