Milk prices are likely to go up in 2019, according to cooperative dairies. As milk supplies are less than usual during this period.
Due to lower returns to farmers, there is a drop in milk production in winter, when supplies tend to go up, cooperative dairies said.
According to RS Sodhi, MD of Gujarat Cooperative Milk Marketing Federation, “Milk prices are to increase in 2019. Low stocks of skimmed milk powder (SMP) and a drop in milk supplies compared to previous year are the two major reasons.” RS Sodhi also owns the Amul brand.
He further added, “Except a few cooperatives, Dairies are not able to give farmers good prices. Therefore, there was a reduction in buying of cattle by farmers. Compared to 15 % growth in milk supplies during winter, this year we have seen only a 2% increase with daily milk procurement of 248 lakh litres by Amul.”
As per the industry estimates, in 2017, the dairy cooperative, including others, had raised milk and milk product prices by Rs 2 a litre.
The availability of SMP and stable commodity prices have helped keep prices stable in 2018. Stocks of SMP in the country by December end are 700,000 tonnes. SMP price has increased to 15% in the past one month to Rs 205 a kg, leading to increasing in exports.
