Backlash To Consumers; RBI Governor Says That Milk Prices Will Not Fall

Milk production has stagnated over the past year as the demand for dairy products has surged. This has led to supply conditions and price hikes, say industry experts. Also, it has warned that prices of milk products will remain stable this summer. The Centre, along with the National Dairy Development Board (NDDB), will monitor the supply and demand issues of milk products and decide on imports as per the situation.

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India is the largest producer of milk in the world. Milk production in 2021-22 is 221 million tonnes. An increase of 6.25 percent from the previous year’s 208 million tonnes. However, production in 2022-23 is estimated to remain flat or witness a slight growth.

RBI Governor Shaktikanta Das said during the monetary policy announcement on Thursday that milk prices are likely to remain stable during summer due to demand and supply volatility and pressure on fodder prices.

The RBI governor also pointed out that consumer price inflation has risen since December 2022 due to pressure on prices of cereals, milk and fruits.

The dairy sector is going through a stressful period. There is a steady surge in the demand for milk and milk products. At the same time, the storage cost of raw milk is also increasing significantly. Also, erratic weather conditions have affected the availability of fodder and fodder and increased other costs have increased the price of raw milk.

However, availability of fodder and fodder will become a price determining factor as the monsoon progresses in the future. The government will closely monitor the situation and provide adequate incentives to the market. Indian Dairy Association (IDA) president RS Sodhi said that the government has taken up the matter. However, if the government approves the import. Experts are of the opinion that there will be no change in the price they get for the milk they provide to the farmers.

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Major dairy cooperatives such as Amul and Mother Dairy have increased the retail price by Rs 2-3 per liter in two or three installments from September 2022. Other state co-operative societies have also hiked prices. This is due to increased cost of feed. Post-Covid, the demand for nutritious, safe and hygienic milk and milk products has increased. The government said that if the situation is favourable, imports will be made to help the dairy cooperatives to meet the summer demand.

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