Milk prices set for another increase as dairy costs climb
Milk prices are set to rise in both Tamil Nadu and Mumbai as dairy producers face mounting expenses related to cattle feed, transportation and livestock maintenance.
Tamil Nadu has seen a cumulative Rs 6 per litre increase in milk procurement rates in less than two weeks. In Mumbai, wholesale milk prices are scheduled to rise by Rs 9 per litre from September 1.
Tamil Nadu Chief Minister C. Joseph Vijay announced a Rs 3 per litre increase in Aavin’s procurement price on Monday. The rate will now rise from Rs 41 to Rs 44 per litre.
The latest revision is expected to add around Rs 60 crore to the Tamil Nadu government’s monthly expenditure, translating to approximately Rs 720 crore a year. It follows another Rs 3 per litre increase that had taken the procurement price from Rs 38 to Rs 41 per litre less than two weeks earlier.
In Mumbai, the Bombay Milk Producers Association has announced a Rs 9 per litre increase in wholesale rates. The price will move from Rs 93 to Rs 102 per litre and is expected to remain at that level until February 28, 2027.
Dairy farmers and cattle shed operators have pointed to increasing prices of green fodder, grain husks and oil cakes, along with higher transport and animal maintenance costs.
The Mumbai price revision could also affect consumers, with retail milk rates and prices of products such as curd, paneer and sweets likely to come under pressure, particularly during the upcoming festive period.