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LATEST NEWS UPDATES | Milk prices defy seasonal trend as supply pressures build -Harish Damodaran

Milk prices defy seasonal trend as supply pressures build -Harish Damodaran

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published Published on Jan 22, 2021   modified Modified on Jan 22, 2021

-The Indian Express

On Tuesday, skim milk powder (SMP) prices at Global Dairy Trade (GDT), the fortnightly auction platform of New Zealand’s Fonterra Cooperative, averaged $3,243 per tonne, the highest since the $3,264 of August 5, 2014.

Vegetable prices have cooled with the usual winter-time increase in supplies of carrots, cauliflower, cabbage, radish, capsicum and peas. Even onions and tomatoes aren’t on fire like they were only a couple of months ago.

That isn’t happening though in milk, whose production also tends to rise during winters when calvings by buffaloes peak. Dairies are now paying more for milk during the current “flush” season (October-March), even as prices of dairy products have firmed up. And if international market trends are any indication, they look set to climb further.

On Tuesday, skim milk powder (SMP) prices at Global Dairy Trade (GDT), the fortnightly auction platform of New Zealand’s Fonterra Cooperative, averaged $3,243 per tonne, the highest since the $3,264 of August 5, 2014.

In the domestic market, too, dairies are selling SMP at Rs 245-255 per kg, as against Rs 180-190 in September and the Rs 140-150 lows touched in July. Even more striking is the recovery in milk fat prices. According to Ganesan Palaniappan, a leading Chennai-based dairy commodities trader, ex-factory rates of cow butter and ghee are ruling at Rs 305-310 and Rs 400 per kg, respectively. These are up from their corresponding levels of Rs 260-270 and Rs 340-350/kg in September and Rs 200-225 and Rs 280-290 in July.

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The Indian Express, 22 January, 2021, https://indianexpress.com/article/india/milk-prices-defy-seasonal-trend-as-supply-pressures-build-7156630/


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