Prices of dairy products likely to remain firm on account of higher demand
A spurt in demand for dairy products amid an almost stagnant milk output in the last one year has led to tight supply situations and elevated prices, industry experts said, and warned that rates may remain firm this summer.
The Centre, along with National Dairy Development Board (NDDB), is monitoring the supply-demand gap in dairy products and will take a decision on imports depending on the situation.
India is the world's largest milk producer. The output stood at 221 million tonne in 2021-22, up 6.25 per cent from 208 million tonne in the previous year. However, the production in 2022-23 is estimated to remain flat or witness slight growth.
While announcing the monetary policy, RBI Governor Shaktikanta Das on Thursday said, "milk prices are also likely to remain firm going into the summer season due to tight demand-supply balance and fodder cost pressures".
The RBI governor had also pointed out that consumer price inflation has increased since December 2022, driven by price press