Milk prices may see another increase by July
Milk prices, which were already raised 2-3 percent in May by major dairy companies, could see a further increase by July or August if El Niño conditions and a weak monsoon worsen feed shortages and impact milk production, according to dairy industry executives.Industry participants said poor rainfall often leads to fodder and water shortages, forcing farmers to reduce livestock numbers. This in turn reduces milk production and leads to higher prices.Devendra Shah, president of Parag Milk Foods, said milk prices had already risen by about 2-3 per cent, and warned of the possibility of a further increase if rainfall remained below normal in key milk producing areas.“Milk prices have already increased by about 2-3% and if rainfall remains below normal in major milk producing areas, a further increase of 3-4% is possible by July,” Shah said.
Concerns about forage emerge as the threat of El Niño looms
The Maharashtra government has urged farmers to increase fodder production amid fears of possible shortage. “The possibility of fodder shortage in the near future due to El Niño cannot be ruled out,” Animal Husbandry Commissioner Kiran Patel said.“To ensure that this situation does not affect livestock and milk production, all livestock farmers in the state must remain alert from now on and plan fodder crops,” he added.
Many dairy companies have also begun working with livestock owners on feed planning to mitigate any negative effects.
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Amul said it would wait to assess the progress of the monsoon before deciding on any further price adjustment. Jain Mehta, managing director of Gujarat Cooperative Milk Marketing Federation (GCMMF), said there is currently no immediate impact on milk availability.“There is no immediate impact of El Niño on milk availability,” Mehta said, adding that rainfall deficiency generally affects only certain areas and not the entire country.Mother Dairy said it is closely monitoring conditions across its procurement network. Managing Director Jayathirtha Chari said the company is preparing for mitigation measures wherever necessary.
Prices already raised in May
The warning comes just weeks after Amul and Mother Dairy increased milk prices by Rs 2 per liter in May. The two companies cited higher purchasing costs, higher livestock feed expenses, packaging costs and fuel prices as the main reasons behind the rise.The increase was about 2.5-3.5 per cent per litre, Amul said, while Mother Dairy noted that procurement prices paid to farmers had risen by about 6 per cent over the past year.State-run dairy company Aavin in Tamil Nadu has also reportedly reduced supplies due to heatwave-related impacts on production.