India’s milk imports rise as farmers wrestle with cattle stock

Published 2023년 4월 4일

Tridge summary

India is experiencing a significant increase in milk prices, which is nearing a record high due to a combination of factors including a rare disease affecting cows, reduced market-ready cattle stock, and the impact of the COVID-19 pandemic. The price of milk has risen by over 15% in the past year, contributing to concerns about retail inflation. The country's milk production is expected to grow by only 1% in the fiscal year ending in March 2023, falling short of the average growth rate of 5.6% over the past decade. This situation is further aggravated by a 39% surge in dairy product exports in 2022, which has led to a decrease in domestic inventories of butter and skimmed milk powder. The government is contemplating the possibility of importing duty-free skimmed milk powder and butter to alleviate the high prices and market pressure.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Khejri Bujurg: Buying milk is getting expensive in India and the price could soon hit an all-time high, forcing the world’s biggest producer to step up imports to boost supplies and ease cost of living pressures. Farmers are wrestling with a rare double whammy: a lethal condition called lumpy skin disease in their cows and a drawdown in market-ready cattle stock after the coronavirus pandemic slowed breeding. Milk prices have already jumped more than 15% to 56 rupees ($0.68) a litre over the past year - the fastest rise in a decade - making it difficult for the government to bring retail inflation below the central bank’s target. The soaring prices of milk and other basic goods is expected to become a political issue heading into state elections later this year. “Any upside risk coming from higher milk prices is going to pose an additional challenge,” said Upasna Bhardwaj, chief economist at India’s Kotak Mahindra Bank. “Since milk has a weightage of 6.6% in the consumer price ...

Source: Gulfnews