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India, the world’s dairy superpower, sees a 15% increase in milk costs

Milk prices in India, the world’s largest producer and consumer of milk, have spiked 15% compared to last year, driven by increased demand for dairy products during the COVID-19 pandemic. Prices have risen in both rural and urban areas, with increasing demand for ghee, yoghurt, butter and other dairy products used in festive season curries and sweets.

The spike in prices has been attributed to a combination of rising dairy commodity prices in the global market, the implementation of animal husbandry-related laws to improve the welfare of cows, as well as the impact of the pandemic on the dairy supply chain due to the nationwide lockdown.

The government is now taking measures to protect consumers by initiating steps to increase the procurement and supply of milk in order to bring down prices. The government has also set up a buffer stock of 80,000 tonnes of skimmed milk powder to aid in price stabilization. There are further plans to set up a national dairy development board to ensure adequate availability of milk across the country.