Milk prices set to go up this year

MILK PRICES are likely to go up in 2019, cooperative dairies said, as supplies are less than usual during this period. Lower returns to farmers have led to the drop in milk production in winter, when supplies tend to go up, they said.

“Milk prices are bound 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,” said Dr. R.S. Sodhi, Managing Director, GCMMF.

Dairies except a few cooperatives are not able to give farmers good prices. Compared to 15 per cent growth in milk supplies during winter, this year Amul has seen only a 2 per cent increase with daily milk procurement of 248 lakh litres. SMP price has increased 15 per cent in the past one month to ₹ 205 a kg, owing to a pickup in exports.