India: Domestic milk production estimated to increase by 5–6% in FY2022
India
Published Nov 11, 2021
Tridge summary
In the current fiscal year, the Indian Dairy sector is expected to grow by 9 -11%, however, profit margins are likely to be impacted by higher procurement prices and operating costs.
Original content
Recently, the Indian Council on Agricultural Research (ICRA), in its report on the Indian Dairy Sector said that domestic milk production is estimated to increase by 5-6% in FY2022, with a normal monsoon and an early onset of the flush season in some regions. The report says – “Post the moderate impact of a pandemic, the industry has witnessed steady recovery in consumption across end-segments. This has been further aided by improving pace of vaccination, fall in fresh Covid-19 cases, revival in economic activities and demand from institutional and HoReCa segments, which too has recovered sharply.” The report states that – “Liquid milk sales continue to be supported by inelastic nature of demand while increasing consumption of value-added dairy products (VADPS) like ghee, butter, curd, cheese, etc. support the overall dairy sales.” The agency said - “With stable milk procurement and lower demand amidst pandemic during FY2021, industry players have converted excess liquid milk to ...
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