Milk procurement prices defy trend to hold steady in this peak flush season

Pent-up demand in the post-Covid scenario, faltering supply due to delay in artificial insemination programme cited as reasons

India’s milk market is showing a very different trend in the peak flush season this year.

Bang in between the peak flush season, when milk supplies are usually higher than normal, procurement prices have started heading north. This is a deviation from the usual trend, because common economics show that when supplies go up prices go down if demand remains stable.

Before we explain this phenomenon, let's take a quick look at the price scenario.

Average procurement prices of cow milk the past few weeks have hovered at Rs 24-26 per litre, moving even beyond this in some parts, while buffalo milk procurement