Supply shortage pushes skimmed milk powder price up 25% in three months

To help dairy companies boost their margins in coming quarters

Milk, products, dairy
Representative Photo (Shutterstock)

In a major relief for dairy companies, prices of skimmed milk powder (SMP) have jumped by nearly 25 per cent over the last three months due to supply shortage. Trading currently at Rs 160-170 a kg in local markets, SMP prices moved in a close range of Rs 125 and Rs 140 a kg for several quarters until August, following supply glut in domestic and global markets. Lack of global demand reduced India’s exports of SMP to ‘nil’ last year as the world was facing huge supply surplus of SMP. Many players, therefore, cut their SMP production to create a balance ...