Milk price hike: Dairy sector crisis seems over for now but will fester

India usually exports around 100,000 tonnes of skimmed milk powder annually, but the drop in international milk prices has forced it to cut exports

The crisis of the country’s dairy sector seems over for now, with the Maharashtra government deciding to give Rs 25 per litre to dairy farmers with effect from July 21 and the Centre announcing an extra 10 per cent export incentive for milk and milk products. 

Milk farmers in Maharashtra were on a four-day strike over weak returns from production.

But fundamental problems and structural issues associated with the sector, particularly in a large state like Maharashtra, where the dairy industry is dominated by small players and cooperatives, will continue to persist.

“Big established players in the dairy sector can