India, one of the world’s major milk producers, is facing rising milk prices due to soaring feed costs, increased demand for ice cream, and epidemics in cattle. According to Mintec, food commodity price database, milk prices in India will range from 46 to 53 rupees per liter from November to early May 2021. The price increase is causing economic pressure on Indians, the world’s largest milk consumers, as milk is a staple in their daily diets. Rising cattle feed prices, coinciding with peak demand periods, are driving higher milk prices. The pandemic has also hit demand, putting small farms under financial strain and reducing production.
Furthermore, millions of dairy herds in the country have suffered from lumpy skin disease, adversely affecting milk production. India’s milk production “will likely continue to be under pressure” and become more dependent on imports. Prices are expected to remain high through 2023 due to limited domestic supply. However, prices are expected to stabilize after Diwali, which falls in November this year.
Milk, ghee, paneer, and yogurt are all staples in the regular diet of Indians. Milk-based desserts are also popular, and during religious holidays, sweets made with milk become a staple. As the country enters summer, demand for products such as ice cream increases. If the price of milk rises, consumers may switch to alternative products or limit their consumption. The dairy sector is already under pressure, and soaring input costs are adding to the strain.