Companies in a fix as lower supplies in peak flush season spike milk prices

Higher prices help farmers, but pressure companies to pass the hike on to consumer

The rise in milk procurement prices in the flush season, though good news for milk farmers, is pressuring companies to pass on the hike to consumers.

This is unusual because milk prices tend to soften during the flush season, which runs from November to March, when supplies are 8-10 per cent more than normal, market players said.

However, trade and market sources said this year, milk supplies in the flush season were 20-25 per cent lower than last year, which has affected procurement rates as well.

As a result, several state milk cooperatives, along with private companies, have either raised