Rising milk prices hit household budgets across India.
According to the latest retail inflation data, the price of milk soared 8.8% year-on-year in January, its fastest pace since April 2020.
Many Indians have simply stopped buying milk, according to a survey of 10,000 households in 300 urban and rural districts by LocalCircles India.
The problem for milk starts with fodder. At this point, wheat production is forecast to hit a record high this season. Despite that, domestic prices have stayed elevated.
Milk prices have always been cyclical, and this situation occurs every three to four years, according to Indian Dairy Association President R. S. Sodhi.
Tight global supplies and higher exports have exacerbated domestic shortages, and, therefore, higher prices prevail in local markets, says Parag Milk Foods Executive Director Akshali Shah.
Higher milk prices have also pushed up prices for dairy products like ice cream by 11%, ghee by 18%, butter by 7.5%, and curd by 9%.