June 22, 2026
 

India's milk prices set for further rise as El Niño threatens fodder supply

Dairy executives warn of a possible 3-4% increase by July following an already implemented 2-3% hike in May, as deficient monsoon risks compound rising feed costs.

 

India's milk prices set for further rise as El Niño threatens fodder supply

 

Dairy executives warn of a possible 3-4% increase by July following an already implemented 2-3% hike in May, as deficient monsoon risks compound rising feed costs.

 

Indian milk prices, already raised 2-3% in May by major dairy companies, could rise further by July or August if El Niño conditions and a deficient monsoon worsen fodder shortages and reduce milk production, according to dairy industry executives.

 

Devendra Shah, Chairman of Parag Milk Foods, said a further 3-4% increase is possible by July if rainfall remains below normal in key milk-producing regions. Poor rainfall typically leads to fodder and water shortages, forcing farmers to reduce cattle numbers, which lowers milk output and pushes up prices.

 

The Maharashtra government has urged farmers to increase fodder production amid concerns over a possible shortage. Kiran Patil, Animal Husbandry Commissioner, said the possibility of a fodder shortage cannot be ruled out due to El Niño, and called on livestock farmers across the state to plan fodder crops in advance. Several dairy companies have begun working with cattle owners on fodder planning to mitigate potential impact.

 

Amul said it would wait to assess monsoon progress before considering any further price revision. Jayen Mehta, Managing Director of the Gujarat Cooperative Milk Marketing Federation, said there is currently no immediate impact on milk availability, noting that deficient rainfall typically affects specific regions rather than the country as a whole. Mother Dairy said it is closely tracking conditions across its procurement network and preparing mitigation measures where required.

 

The warning follows a Rs2 per litre price increase implemented by Amul and Mother Dairy in May, which both companies attributed to rising procurement costs, higher cattle feed expenses, packaging costs and fuel prices. Amul said the increase amounted to roughly 2.5-3.5% per litre, while Mother Dairy said procurement prices paid to farmers had risen by around 6% over the past year. Tamil Nadu's state-run dairy brand Aavin has also reportedly reduced supplies due to heatwave-related impacts on production.

 

- The Times of India