Cooler summer halts the dairy crisis, industry looks at a turnaround

What has caused this transformation and will it last? Milk industry veterans point to a couple of factors for this U-turn

Between January and March, India was facing a shortage of milk products such as butter and ghee, raising prospects of imports in a country that is the world’s largest supplier of liquid milk.

Today, the scene couldn’t be more different. Supplies are stable and milk procurement prices in several centres have softened.

Over the past few weeks, industry players say the average buffalo milk procurement price across India has softened about 3 per cent to around Rs 52 a litre against Rs 54-55 in January-March.

Similarly, cow milk prices have dropped 10-13 per cent to around Rs 33 per litre