Milk output may rise 6-7%

A good monsoon, stable cattle-feed cost and better price to farmers are expected to increase domestic milk production by six-seven per cent and ensure stable prices to consumers. The production growth rate will be higher than three-four per cent increase achieved in recent years.

R S Sodhi, managing director, Gujarat Cooperative Milk Marketing Federation, which sells milk and milk products under the Amul brand across most domestic markets, said, “A series of price increase has been taken up. However, the uptrend seen in the past one year will not continue and prices will be stable now, on better availability.” Leading milk retailers like Amul and Mother Dairy have taken a series of price increases in the current calendar year. Over a year, the retail milk price has increased by nearly 20 per cent. In September, Mother Dairy raised the price of full cream milk by Rs 2 to Rs 37 per litre and the price of double-toned milk from Rs 24 to Rs 25 per litre.

 

Sodhi said the country’s milk production is expected to touch 127 million tonnes (mt) this financial year, against 120 mt in the previous year. India is the world’s biggest milk producing nation. “Farmers are getting 18-19 per cent higher price for milk compared to last year, cattle-feed prices are stable and farmers will certainly produce more than last year,” he said.

Amul had last month cut butter production marginally to meet the strong festive demand for milk. It is now restoring the butter production.

While a stable milk price is certainly good news that will help control food inflation, prices of certain milk products are already coming down. Prices of skimmed milk powder (SMP) have come down by seven per cent compared to last month.

“SMP was selling at Rs 200 a kg around Diwali and is now available for Rs 185. Prices have come down as the flush season has started. These will come down further,” said Sandeep Aggrawal, director, SMC Foods, that sells SMP under the Madhusudan brand.

Prices of ghee have also come down from around Rs 295 a kg to Rs 280. Aggrawal said further downward pressure is expected in prices of both SMP and ghee. The country had imposed a ban on export of milk powder and casein to improve milk availability.