IT JUST does not add up. India, the world's largest milk producer for over half a century, is struggling with runaway milk prices. In 2021-22, the country accounted for 221 million tonnes-almost a quarter of the global milk production, says the UN Food and Agriculture Organization (FAO). Yet, milk prices are at an all-time high. According to the Department of Consumer Affairs, average retail price of milk has increased by 18.08 per cent in the past two years; a litre of milk now costs upwards of ₹58, as against ₹49.18 in 2021. In fact, since 2022-23, milk price rise has been driving overall food inflation in the country. The National Bank for Agriculture and Rural Development (NABARD), an apex regulatory body for regional rural and cooperative banks, states in the May 2023 issue of its publication EcoFocus that the price rise is because of a sharp decline in milk production growth, from 5.3 per cent in 2021-22 to 0.4 per cent in 2022-23.
Amid reports of milk shortage and dairy products like butter and ghee missing from store shelves, Rajesh Kumar Singh, then secretary of the Department of Animal Husbandry and Dairying (DAHD), held a press conference on April 5, 2023. Singh cited two reasons for this stagnant supply: one, the infectious lumpy skin disease, which has infected 3.2 million cattle and buffaloes across the country in the past year and killed over 0.2 million animals; two, a rebound in consumer demand following the novel coronavirus (COVID-19) pandemic.
This story is from the August 16, 2023 edition of Down To Earth.
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This story is from the August 16, 2023 edition of Down To Earth.
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