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Indian Farmers Feel Heat from Dairy Prices

29 June 2015

INDIA – India's dairy producers are feeling the effects of the global dairy commodity price crash, having to produce milk for ten rupees per litre below year ago prices.

Processors in the north, which focus on skimmed milk powder manufacturing (SMP), ghee and other bulk products are offering 30 rupees per litre against 40 rupees last year.

The Indian Express reports that Maharashtra dairies – in the midlands – are paying 19 rupees, whereas last year it was closer to 30 rupees.

Buffalo milk contains 6.5 per cent fat, making it a premium product.

“Farmers are worried,” Dashrath Mane, chairman of Indapur Dairy and Milk Products, told the Indian Express.

Kuldeep Saluja, managing director of the Sterling Agro Industries Ltd said: “During the export boom, we could afford milk prices of Rs 40/litre. But at today’s realisations, we have no option but to reduce procurement prices.”

Top image via Shutterstock



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