The recent spurt in milk prices stemmed from a hike in the cost of fodder, according to RS Sodhi, President of the Indian Dairy Association.
Milk inflation has been the second largest factor (after cereals) in driving up retail inflation in January and February. Milk prices surged by 9.6 percent on-year, shows the February CPI (consumer price index) data.
“There’s a lag of 4-5 months between feed cost inflation and milk inflation,” Sodhi told CNBC-TV18, citing the reason behind the price increase.
He mentioned that the association has noted a rise in prices of other animal products like poultry as well. “We will see price stability only by October-November,” he said, further emphasising that reduction in milk prices are not expected until Diwali.
