Dairy companies see milk procurement price stabilising at higher levels

Both liquid milk and SMP prices jumped by 10% in three months and 25% in one year

With the onset of winter and the resulting rise in milk supply across the country, dairy companies are expecting procurement prices to stabilise at current levels. 

Milk procurement prices for dairies are now Rs 31 a litre in Mahrashtra, from Rs 28 a litre before the severe floods in the western part of the state in the first fortnight of August. Thousands of milch cattle are feared lost. Similar flooding in other milk producing regions have hit the country’s output.

In contrast, milk demand has risen in the ongoing festival season, prompting dairy companies to raise procurement prices.

“While it is premature to