‘Increase in milk prices linked with demand shortfall during pandemic’

As the prices of milk have increased manifold in recent times due to increase in the price of fodder and shortfall in milk production, the government may consider importing dairy products like butter and ghee to stabilize the rates of essential food items. While talking to Millennium Post, Animal Husbandry Secretary Rajesh Kumar Singh said that as like food inflation, there would be inflationary pressure on milk too.

“The main reason behind rise in prices of milk is shortfall in the demand during the two years of Covid-19 pandemic and milk supply was surplus that led to ‘under investment’ in the sector during the pandemic period,” said Singh, who is 1989-batch Kerala cadre IAS officer.

“Post pandemic, when the market opened, there was a huge spurt in the demand. As per the recent figures, there is 1-2 percent increase in milk production, while demand of the whitener has rose by 8-10 percent,” he said, adding that the department through its National Livestock Mission (NLM) and Rashtriya Gokul Mission (RGM) is providing 50 percent capital subsidy on establishing fodder units and new cattle breeding units.

“As of now, there is no constraint in liquid milk and stocks are little lower in fats and butter from the previous years. Whether we have to import or not that would be decided only after assessing the stock position of milk in Southern states, where the flushing (peak production) season has started now. Also, in the northern part, the lean season has been postponed due to temperature cooling down after untimely rains in the last 20 days,” he added. Singh, however, observed that the imports may not be beneficial at this point in time as international prices in recent months are ruling firm.

“Import is the last resort to cool down the prices of essential food items. We are hoping that there would be no need to import milk products,” he stressed. According to the secretary, the country’s milk output remained stagnant due to the impact of lumpy skin disease that killed 1.89 lakh cattle last year and the post-pandemic rebound in milk demand.

“The impact of lumpy skin disease on cattle can be felt to the extent that the total milk production is a little stagnant. Normally, milk production has been growing at 6 per cent annually. However this year (2022-23), it will be either stagnant or grow at 1-2 per cent,” he said.

Outlining the objectives of Animal Health System Support for One Health (AHSSOH), which is to be started with the support of World Bank, Singh said, “Its aim is to create an ecosystem for a better animal health management system using the One Health approach.”

The project will be implemented in five states and it envisages improving capacity building of stakeholders involved in animal health and disease management.

The project calls for participation by human health, forest and environment departments at the national, regional as well as local for creating and strengthening the ‘one health’ architecture, including community engagement. The project will be launched by Union Minister Parshottam Rupala on April 14.