India is the largest milk producer country in the world, producing 18.5% of world production. Yet their dairy farmers fared much better than their counterparts in the world’s leading export countries during the latest crash in milk prices.
There is also a big difference in milk price between the different states in the country. In Maharashtra milk prices did fall by 28% but in Gujarat prices increased by 10%.
Average milk price increase
Figures from the NDDB (National Dairy Development Board) show that the average milk price increased across the whole country from Rs 25.73/kg (32.5 c/l) to Rs 26.3/kg (33.20 c/l) within the last year.
An official from the NDDB said only in states where private dairies operated did milk prices fall but in the states where co-ops operated farmers continued to achieve better prices.
India exports very little of its total production but its industry is able to increase due to the steady demand for value-added products as well as liquid milk. In volume terms the country’s milk industry grew by 4% annually in the last five years.