
Indian Dairy Association president says milk price increases are unlikely next year, balancing producer costs and consumer demand.
Milk prices in India are unlikely to rise in 2026, according to Sudhir Kr Singh, President of the Indian Dairy Association (IDA). He told reporters that retail milk prices are adjusted only when dairy companies face pressures from rising input costs such as cattle feed, logistics and processing expenses — and for now, there’s no compelling reason to push prices higher.
Singh emphasized the industry’s goal to balance the interests of producers and consumers, affirming that any decision to raise prices would need to carefully weigh the financial realities of milk producers against household affordability. Nearly 70% of the cost of milk production in India is linked to feed expenses, making cost management a central focus for dairy cooperatives and private processors alike.
A key context for Singh’s outlook is India’s status as a milk-surplus country, with strong domestic output helping keep supply and demand in rough equilibrium. The Indian government has also maintained protective policies for dairy, keeping the sector out of certain international trade agreements — including aspects of the India-US interim trade deal — to guard local producers from cheap imports that could undermine domestic milk prices.
Singh also noted efforts to diversify and grow regional dairy markets beyond western and southern India. With NDDB support, milk production and procurement have expanded in eastern states such as Bihar, Jharkhand, Assam, Manipur and Tripura, signaling a structural shift toward a more geographically balanced dairy economy.
Looking ahead, the IDA is set to host the 52nd Dairy Industry Conference from February 12–14, 2026 in New Delhi, bringing together industry leaders to explore growth opportunities across India’s dynamic dairy sector. Analysts and producers will watch closely how price stability, production trends and policy support shape the dairy market next year.
Source: ANI / Economic News — https://aninews.in/news/business/milk-price-hike-unlikely-in-2026-says-indian-dairy-association-president20260210182058/
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