
Bombay Milk Producers Association lifts wholesale buffalo milk rate to ₹102 per litre until February 2027, citing rising cattle feed and logistics costs.
Milk is set to become significantly more expensive across the Mumbai metropolitan area starting September 1, 2026, after the Bombay Milk Producers Association (BMPA) announced a sharp ₹9 per litre hike in wholesale milk rates. The adjustment raises the wholesale price of milk supplied across Mumbai and its adjoining urban peripheries from the current ₹93 per litre to ₹102 per litre. The association confirmed that the revised pricing structure will remain in effect for a six-month period through February 28, 2027.
The steep price revision comes just ahead of the high-demand festival period, including Ganesh Chaturthi, Navratri, and Diwali, when household milk consumption and commercial sweet-making demand typically peak. The decision to increase rates follows extensive discussions among local dairy farmers and tabela (cattle shed) operators who supply a substantial portion of the city’s loose and fresh buffalo milk daily.
BMPA leadership attributed the sharp price increase to compounding inflationary pressures on dairy production and livestock maintenance across Maharashtra. Over the past year, the cost of essential cattle feed—including green fodder, chuni, cotton seed cake, and oil meals—has escalated substantially, eroding operational margins for urban and peri-urban dairy producers.
Beyond animal nutrition expenses, producers and distributors are grappling with higher logistics overheads driven by diesel price fluctuations, as well as rising veterinary care, medicine, and labour costs required to operate dairy sheds. Producers emphasized that holding wholesale prices at previous levels was no longer viable given the sustained escalation in baseline input expenses.
The wholesale increase is expected to trigger corresponding price adjustments across downstream retail channels, pushing loose buffalo milk prices higher at local neighborhood dairies. The surge in milk prices, coupled with recent increases in retail sugar prices, will also raise production costs for confectioners, restaurants, and traditional dairy sweet manufacturers across the Mumbai region.
Source: Outlook Business
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