Milk prices likely to stay on the boil

Milk prices may hit fresh highs after having risen steadily in the past year, according to industry executives, given the seasonal slump in production of about 50% from April to September which raises the cost of production through various procurement overheads.

Buffalo milk prices have increased 5-6% in the past one week and cow milk prices may increase too as the dairy industry has been struggling with cost inflation, largely due to intrinsic challenges such as changing weather patterns and unforeseen issues like lumpy skin disease in cows that impacted cattle over the past year.

For instance, Sid's Farm, a direct-to-consumer dairy brand based in Telangana, has announced an increase in the retail price of the A2 buffalo milk to ₹55 per 500 ml from ₹52 and A2 double toned buffalo milk to ₹44 per 500 ml from ₹42.


"Despite a considerable increase in the cost of procuring raw buffalo milk in the last six months, sufficient care has been taken by Sid's Farm to limit the price rise to as little as possible," said Kishore Indukuri, the founder of Sid's Farm.

Organised dairy players in Delhi-NCR, including Mother Dairy and Amul, have increased milk prices multiple times since last year. The hikes were induced by higher fodder costs, robust demand and lumpy skin disease in cows.