Dairy News

Milk likely to get pricey this sumer

Monday, 06/03/2017

http://timesofindia.indiatimes.com/city/indore/milk-likely-to-get-pricey-this-sumer/articleshow/57483724.cms

Indore: The reduction in the availability of milk in summer due to a likely drop in production might push its price up. Milk production this season has already dropped by about 30 per cent in winter due to higher fodder prices and rising costs to rear animals.

Rise in day and night temperature in coming weeks may hit milk producing capacity of cattle due to limited availability of green grass and water.

Any further drop in milk production in the region may lead to a price rise in summer months. Indore Dudgh Vikreta Sangh had increased milk prices in February by Rs 2 to Rs 43 a litre.

Bharat Mathurawala, president, Indore Dudgh Vikreta Sangh said, "As of now, we can still meet demands of milk in the city but if production drops further, then we may consider raising prices."

Milk production in the region is about 13 lakh litres of which consumption in Indore is about 11-12 lakh litres a day.

Usually milk prices are increased in summers when supply drops and the availability of it as well as its related products reduce in the market.

According to distributors, this winter, milk prices were increased due to higher costs of cattle fodder which rose by about 50 per cent this year to Rs 3,000 per quintal.

According to Indore Dudgh Vikreta Sangh, the hike in prices increased farmers' remuneration and about 80 per cent of them have bought new cattle to meet milk demands in the city.

Mathurawala said, "Hike in prices have benefited farmers. Business which was once running on losses due to higher fodder prices has become profitable. Farmers have bought new buffaloes and cows to bridge the gap in demand."

Industry participants said a buffalo is priced between Rs 60,000 and Rs 90,000 while cows are available between Rs 35,000-Rs 50,000.