As Milk Supply Worries Ease, SMP Prices Cool Off
The Hindu Business Line|February 27, 2020
Milk procurement improves as flush season is on in northern States; South set to follow suit
Rutam Vora
As Milk Supply Worries Ease, SMP Prices Cool Off

The onset of flush season in the southern States by mid March is expected to ease the tension of milk supply during the summer season. Already, prices of skimmed milk powder (SMP) have started to cool off from their recent peaks.

SMP prices have fallen to₹310 a kg from the peak of ₹330-340 seen in DecemberJanuary. This is primarily attributed to the onset of the flush season (increased lactation of the milch animal) in the northern States. Also, experts believe the flush season in the key SMP-producing regions of Maharashtra, Karnataka and Tamil Nadu is likely to set in by mid-March.

“We believe that in another one week or so, the flush will start in southern States and then we will have abundant milk supplies. The delay in flush is because there was a delay in the withdrawal of the rainy season with waterlogged fields in many parts. It is believed that in North India flush has already started, which is helping to ease supplies,” said RG Chandramogan, dairy industry veteran and Chairman of Hatsun Agro.

Chandramogan said that following good rain in the milk producing States, the water table has improved, leading to better availability of green fodder.

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