Data | World’s largest producer of milk hits a dry patch Premium

Milk prices are ruling high as supply is constrained by lumpy skin disease and high fodder costs

In March 2022, a full-cream packet of Amul milk cost ₹60/litre. The one-litre pouch now costs ₹66. Since 2021, milk prices in India have been on a boil. Prices have been hiked across brands and the recent hike in February 2023 was Amul’s fifth increase since 2021.

In April 2023, the average price for a litre of milk in India was ₹57, which is about 12% higher than ₹51 in April 2022. The average milk price is the highest in Lucknow and Guwahati at ₹66/litre and ₹65/litre, respectively. Southern cities such as Bengaluru and Chennai have relatively lower milk prices.

In the past year, Ernakulam saw the highest rise in milk prices at 19%, followed by Mumbai, Lucknow and Jaipur which saw over 10% rise ( chart 1). 

Chart 1 | The chart shows the average retail price for a litre of milk in the month of April for the past six years.

Chart appears incomplete? Click to remove AMP mode

The Central Bank’s monetary policy committee, which met in the first week of April, said in a statement that high inflation in milk was one of the reasons driving retail inflation. While retail inflation slowed to 5.66% in March, milk inflation continued to tread higher. In the same month, milk inflation was at 9.24%, close to the levels last seen in February 2015 ( chart 2). 

At the same time, there have been concerns over the country’s stagnant milk production in FY23. On April 5, Secretary for Animal Husbandry and Dairying Rajesh Kumar Singh said the country was facing stagnation and that the government would consider all options, including the import of butter and ghee if the situation remained unchanged.