With retail inflation consistently above 6 per cent, milk prices have also shot up. Its price has increased by 6.5 percent in one year, while it has increased by more than 8 percent in the last five months.
A report by MK Global Financial Services states that milk prices will continue to rise further as demand remains high. The monthly growth in milk and its products over the previous year has been 0.8 per cent. Compared to the average growth of 0.3 percent in the five years before Corona, this time there has been double growth. Its contribution to headline inflation has gone up to 6 per cent after the pandemic.
Fodder prices increased by 10 percent
There are several factors contributing to the continued rise in milk prices. Added to this are rising costs, disruption due to the pandemic and international prices. However, the main reason for this is the continuous increase in the cost of animal feed. Fodder prices have increased by more than 10 percent since February 2022. In fact its prices have never increased by less than 20% since May. Fodder prices have come down somewhat in the last three months, but they still average more than six per cent higher than last year.
less production, more export
Milk production has decreased, and dairies have been purchasing less milk throughout the year. Dairy exports were to double during the financial year 2021 to 2022. The trend is likely to remain the same in FY2023, especially due to rising international prices. With better forage availability and lower temperature, milch animals generally give more milk from September onwards.
