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Milk Prices to Remain Firm this Summer, RBI Governor - Economic Times

Milk prices are expected to remain high this summer due to tight demand-supply balance and high input costs, said Reserve Bank of India (RBI) Governor Shaktikanta Das at the first bi-monthly monetary policy of 2023 on Thursday. “Milk prices could remain firm due to high input costs and seasonal factors,” said Das.

The RBI’s observation comes a day after reports stated that the government was mulling import of dairy products this financial year amid muted milk production. India, which is the world’s largest milk producer, might look at importing dairy products due to the tight supply situation.

Milk production remained stagnant in FY2022-23 weighed by lumpy skin disease that killed nearly 1.89 lakh cattle last year and affected the post-pandemic rebound in milk demand. India had previously imported dairy products in 2011.

The government may intervene to import dairy products such as butter and ghee, if needed, after evaluating the stock position of milk in the southern states, where peak production season has now begun, news agency PTI had reported quoting Animal Husbandry and Dairy Secretary Rajesh Kumar Singh at a press conference on April 5.

While there was no constraint of milk supply with adequate inventory of skimmed milk powder (SMP), the stocks of dairy items were lower than the previous year, the government official said.

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