As per the cooperative dairies, milk prices are likely to go up in 2019. It is because supplies are less than usual during this period. farmers got lower returns and this thing has led to the drop in milk production in winter.
RS Sodhi, managing director of Gujarat Cooperative Milk Marketing Federation which owns the Amul brand 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.”
He said, few cooperatives are not able to give farmers good prices, and therefore there was a reduction in buying of cattle by farmers. He also added, “Compared to 15 per cent growth in milk supplies during winter, this year we have seen only a 2 per cent increase with daily milk procurement of 248 lakh litres by Amul.”
Last year, the dairy cooperative, had raised milk and milk product prices by Rs 2 a litre. Availability of SMP and stable commodity prices have helped keep prices stable in 2018.
According to the industry estimates, stocks of skimmed milk powder in the country as of end-December are 700,000 tonnes. Skimmed milk powder price has increased 15 per cent in the past one month to Rs 205 per kg.