Top domestic dairy brands Amul and Mother Dairy expect milk and milk product prices to remain stable this summer on the back of adequate supplies.
Over the next couple of weeks, milk procurement is seen increasing in south India, aided by an expected normal rainfall this year. All major dairies had raised milk prices by Rs 2 a litre in February and March over concerns of low stocks and higher compensation to farmers.
“Milk prices will remain stable this summer as the price increase has been done by all companies till March,” said RS Sodhi, managing director of Gujarat Co-operative Milk Marketing Federation Ltd, which markets its products under the ‘Amul’ brand. Amul procures 120 lakh litres of milk every day from farmers. Sodhi said the company is keeping a close watch on the progress of monsoon.
Mother Dairy, which procures 30 lakh litres of milk every day, also said it does not anticipate prices to increase. “At the onset of summer, we are keeping a close watch on the milk prices. As of now, we don’t foresee any major change in the near future,” said Sandeep Ghosh, business head- milk, Mother Dairy. Dairy cooperatives currently hold 1.25-1.5 lakh tonnes of skimmed milk powder (SMP) stock, compared with 2 lakh tonnes a year ago, said Sodhi.
Prices of SMP have remained stable at Rs 240-250 a kg for the past three months, said traders. In summer, when milk production drops, the dairy sector is compelled to manufacture liquid milk and other products by diluting milk powder. Ten tonnes of SMP are used to make one lakh litre of milk.
