"Prices of cattle-feed have gone up by 70 per cent, which is affecting dairy farmers. Even the global milk scenario is not positive and export is down. This situation will continue for some more time," NDDB chairman T Nanda Kumar told PTI here.
"There is no possibility of domestic milk prices coming down. Prices of some cattle-feed ingredients continue to rise and that affects milk producers," he added.
In such a scenario, lowering milk prices will hit farmers, he said, but also added that milk prices may not go up either.
IDMC will also set up a plant to produce packaging materials with extra shelf life with 5-9 layer film, which is expected to be ready by the end of the year, Kumar said adding, "It will be the first of its kind the country."
Ravi Shankar, managing director of IDMC, which is into dairy equipment, food product and system integration businesses and offers a range of processing and packaging solutions to make food safe, said the proposed packaging plant may come up in Chennai.