MILK PRICES
Source: The Indian Express
Context
A Price hike of Rs 2 Per litre of milk was announced for all its markets by dairy Amul and several other dairy companies across the country have signalled that they would follow suit.
Key points
- The price rise in the MRP comes to 4 per cent, which is lower than the prevailing rate of inflation.
- The price hike is being done due to an increase in the overall cost of operation and production of milk.
- The cattle feeding cost alone has increased by around 20 per cent compared to last year.
- Dairies across the country are reporting a shortfall of 8-10 per cent in milk collection.
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Image source: Business Today.inRise in cattle feed cost
- The reduction in milk yield has come on the back of the rising cost of cattle feed.
- Heavy rainfall in several parts of the country has resulted in lower green fodder yield.
- Protein and mineral mixtures have also seen a rise in prices, leading to increasing the cost of cattle feed.
- The cost of production of milk has gone up. Cattle feed cost alone has gone up by over 25 per cent.
Disease in cattle
Some major milk-producing states have seen a rise in cases of the disease, which leads to falling in milk output, has been reported in Gujarat, Punjab and Haryana.
Other factors
- There has also been a rise in transport, logistics, manpower and energy costs.
- Due to the rise in input costs, milk procurement rates have increased by 15-25 per cent over the same time last year.
Demand-supply mismatch
- The pandemic-hit dairy industry has reported a complete recovery.
- This year, the demand for liquid milk is also high compared to previous years.
- But most dairies in the country are short on their supply of skimmed milk powder (SMP) and white butter.
- Dairies have hinted at a further increase in milk prices before October when the production is expected to pick up.
