Maharashtra Dairy Processors Raise Milk Prices Nationwide

Dairy processors in Maharashtra have revised milk prices across the country after operating expenses rose throughout the primary dairy supply chain. The change follows higher costs for collection, refrigeration, packaging and the purchase of raw milk from farms.

Local diesel prices increased by 10 rupees per litre. For processors, the rise added to the expense of collecting milk in bulk and moving it through cold-chain systems. Packaging costs also climbed by about 30%, adding further pressure to facilities handling large daily volumes of liquid milk.

Higher procurement costs

Processing organisations said that prevailing retail prices no longer covered the economics of buying raw milk. Feed became more expensive, rural labour wages rose, and seasonal changes in yields affected the availability of milk from farms.

Dairies consequently raised the prices paid at the farm gate to obtain sufficient volumes. The processors said that passing part of these higher costs to buyers would support baseline processing margins while allowing them to continue receiving milk from regional cooperative networks.

Impact on dairy products

Prices for processed dairy products may rise by as much as 10% in the coming weeks as the increased cost of liquid milk moves through manufacturing operations. The categories affected include curd, butter, paneer, ghee, cheese and yogurt.

Plants producing cultured dairy goods and milk solids are revising their wholesale price lists. The changes are intended to reflect the higher raw-material cost associated with the revised price of fluid milk.