From FY 2019 to FY 2024, the price of toned milk in India surged by 33%, rising from ₹39 to ₹51.83 per liter. This increase is driven by higher production costs and market dynamics. While the Department of Animal Husbandry & Dairying monitors the situation, it does not regulate prices directly. The Indian government supports the dairy sector through schemes like the National Program for Dairy Development and the Animal Husbandry Infrastructure Development Fund, which aim to enhance production and support farmers. These interventions are crucial for balancing consumer prices and improving farmer incomes.
The cost of toned milk in India has seen a significant rise over the last five years, with prices increasing by 33% from FY 2019 to FY 2024. The average price per liter of toned milk escalated from ₹39 in FY 2018-19 to ₹51.83 in FY 2023-24. This sharp increase has been attributed to various factors, including production costs and market dynamics, which are determined by both cooperative and private dairies. The Department of Animal Husbandry & Dairying (DAHD) does not directly control these prices, but it regularly monitors the situation to understand the broader impacts on the dairy industry and farmers.
Toned Milk Price Trend
Analyzing the price trend over the last five fiscal years highlights the progressive increase in the cost of toned milk.
| Financial Year | Price |
| FY 2018-19 | ₹38.99 per liter |
| FY 2019-20 | ₹39.81 per liter |
| FY 2020-21 | ₹44.75 per liter |
| FY 2021-22 | ₹45.64 per liter |
| FY 2022-23 | ₹48.69 per liter |
| FY 2023-24 | ₹51.83 per liter |
The gradual rise in prices reflects the broader economic conditions and cost factors influencing the dairy industry.
Factors Influencing Milk Prices
The pricing of milk in India is primarily influenced by the cost of production, which includes the cost of feed, fodder, veterinary care, and other inputs necessary for maintaining milk yield and quality. Additionally, market forces such as demand-supply dynamics, inflation, and transportation costs play a crucial role in determining the final retail price of milk.
Cooperative and private dairies set milk prices based on their operational costs and market conditions, leading to the observed fluctuations over the years. The government, through the DAHD, does not intervene directly in price setting but keeps a close watch on the industry to ensure stability and support for dairy farmers.
Government Support Through Dairy Development Schemes
Despite not regulating milk prices, the Indian government has implemented several schemes to bolster the dairy industry. These schemes aim to improve milk production, enhance the productivity of bovines, and strengthen the overall dairy infrastructure. The primary schemes under the DAHD include:
- National Program for Dairy Development (NPDD): Focused on increasing milk production and improving the quality of milk products through better infrastructure and modernized procurement, processing, and marketing systems.
- Supporting Dairy Cooperatives & Farmer Producer Organizations (SDCFPO): Aimed at strengthening the operations of dairy cooperatives and FPOs, ensuring they can deliver quality services and enhance their members’ livelihoods.
- Animal Husbandry Infrastructure Development Fund (AHIDF): Provides financial assistance for establishing and upgrading infrastructure related to dairy processing, milk chilling, and feed production, among other activities.
Impact on Dairy Farmers
These government interventions have positively impacted over 9 crore dairy farmers across India. By improving the availability of feed and fodder, enhancing infrastructure, and supporting productivity improvements, these schemes help reduce production costs. This, in turn, stabilizes milk prices and increases farmers’ income, making dairy farming a more viable and profitable occupation.
The rise in toned milk prices over the past five years underscores the need for continued support and investment in the dairy sector. While the government does not regulate milk prices directly, its various schemes play a crucial role in sustaining the industry’s growth and ensuring that dairy farming remains a profitable endeavor for millions of farmers across India. As production costs continue to rise, these interventions will be essential in maintaining the balance between consumer prices and farmer incomes.
