Pune: Analysts Predict Stable Milk Prices Despite Seasonal Challenges in Summer

Pune, 10th March 2024: This summer, there seems to be a limited likelihood of an increase in the prices of milk and milk products. Typically, during the summer season, there is a significant deficit in milk production, leading to a surge in prices. However, this year, analysts anticipate stable prices due to improved planning by farmers and reduced production gaps.

Dairy industry analyst Prakash Kutwal of Kutwal Foods Pvt Ltd highlighted that farmers have become more proactive, implementing proper planning for wet and dry fodder, water management, and upgraded cowsheds with controlled temperature and humidity. These measures have contributed to minimizing the historical deficits observed during monsoon and summer milk production.

In the state of Maharashtra, an average of 1 crore 10 lakh litres of milk is collected daily, with buffalo milk accounting for up to 30% of the total. The period from February 15 to June 15 is considered a booming period in the dairy business, primarily driven by increased demand for products like curd, buttermilk, lassi, shrikhand, amrakhand, and sughandi milk during the summer. While the demand surge used to lead to a yearly increase in the prices of milk and milk products, recent years have seen more stable production during monsoon and summer, with only minor fluctuations.

Buffalo milk, with a fat content of 6.0%, is fetching Rs 50 per litre, a price that has remained relatively stable compared to the fluctuating prices of cow’s milk, which currently ranges from Rs. 25 to 27 for farmers. The increased production of buffalo milk is not only limited to traditional areas like Kolhapur and Sangli but has expanded to districts like Ahmednagar, known for cow milk production.

Despite the increased demand for milk and its products during summer, the stability in prices is attributed to a favourable global market where prices of milk powder and cheese have fallen. Bhagwan Pasalkar, president of Katraj Milk, affirmed that prices of milk and milk products are expected to remain stable this summer, thanks to the ample availability of milk for processing.