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Covid-19: Milk consumption down 25% in one month as eateries remain shut

Dairy farmers' realisation plunges Rs 5-7 a litre; Household consumption of milk products rises

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Normally when milk supply is higher than consumption demand, dairies produce SMP or milk powder to sell that the peak demand and lean supply season which is just few weeks away | Photo: iStock

Dilip Kumar Jha Mumbai

4 min read Last Updated : Mar 31 2020 | 2:27 AM IST

In a major setback to millions of farmers, India's milk consumption has declined 25 per cent over the last month because of the closure of hotels, restaurants, and roadside tea stalls amid a nationwide lockdown to prevent the spread of coronavirus.

The decline in consumption has resulted in a Rs 5-7 per litre (or 25 per cent) decline in the realisation of dairy farmers. The milk market is flooded with surplus supply, with farmers at some areas selling in distress at a 50 per cent discount. Distress sales are happening in remote areas where private and co-operative dairies could not reach

Topics : Coronavirus Lockdown Milk prices milk consumption Dairy companies Dairy farmers

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