The increase comes eight months after the previous hike
As the summer heat sets in, prices of milk are on the boil. Arrivals are already slow in parts of the country, including Maharashtra (which is reeling under the impact of two consecutive years of drought), and farmgate prices have risen across the country. While some players have already raised retail prices, others are in a wait and watch mode. The country's largest dairy cooperative the Gujarat Cooperative Milk Marketing Federation (GCMMF) has already said that it would raise milk prices by Rs 2 per litre in March. The federation, however, is yet to decide the exact date from which this would be applicable. This is because input costs for farmers, which includes fodder, cattle-feed etc have gone up by 20-25 per cent in the past one year. Shiva Mudgil, senior analyst, Rabobank said, "Increase in feed and fodder prices is also putting pressure on procurement prices. Fodder prices have increased by 15 per cent to 20 per cent in last one year. Cow raw milk prices have increased by more .
However, private companies in the segment point to the low output of home breeds.
The economy has been affected by around 50 per cent
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Fodder crisis, commodity prices firming up, tight supplies in summer months might push milk prices upwards