Milk prices, which were already raised by 2-3 per cent in May by major dairy companies, could see another increase by July or August if El Niño conditions and a deficient monsoon worsen fodder shortages and impact milk production, according to dairy industry executives.Industry players said poor rainfall often leads to shortages of fodder and water, forcing farmers to reduce cattle numbers. This, in turn, lowers milk output and pushes up prices.Parag Milk Foods chairman Devendra Shah said milk prices have already risen by around 2-3 per cent and warned that another increase may be on the cards if rainfall remains below normal in key milk-producing regions.“Milk prices have already increased by around 2-3% and, if rainfall remains below normal in key milk-producing regions, a further 3-4% increase is possible by July,” Shah said, as quoted by ET.
Fodder concerns emerge as El Niño risk looms
The Maharashtra government has urged farmers to increase fodder production amid concerns over a possible shortage. Animal husbandry commissioner Kiran Patil said, “The possibility of a fodder shortage in the near future cannot be ruled out due to El Niño.”“To ensure this situation does not affect livestock and milk production, all livestock farmers in the state should remain alert from now on and plan for fodder crops,” he added.Several dairy companies have also begun working with cattle owners on fodder planning to mitigate any adverse impact.
Major dairies monitoring situation
Amul said it would wait to assess the progress of the monsoon before taking a view on any further price revision. Jayen Mehta, managing director of the Gujarat Cooperative Milk Marketing Federation (GCMMF), said that there is currently no immediate impact on milk availability.“There is no immediate impact of El Niño on the availability of milk,” Mehta said, adding that deficient rainfall generally affects only certain regions rather than the entire country.Mother Dairy said it is closely tracking conditions across its procurement network. Managing director Jayatheertha Chary said the company is preparing mitigation measures wherever required.
Prices already raised in May
The warning comes just weeks after Amul and Mother Dairy increased milk prices by Rs 2 per litre in May. Both companies cited rising procurement costs, higher cattle feed expenses, packaging costs and fuel prices as key reasons behind the hike.Amul had said the increase amounted to about 2.5-3.5 per cent per litre, while Mother Dairy noted that procurement prices paid to farmers had risen by around 6 per cent over the past year.Tamil Nadu’s state-run dairy brand Aavin has also reportedly reduced supplies due to heatwave-related impacts on production.
