What’s causing the shortage of dairy products in India?

The shortage of dairy products in India comes amid a decadal high in milk prices. They have risen by around 6.5% on average over the past year in India. The country’s largest dairy brand, Amul, has raised prices by about 15% to $0.68 a litre.


A bunch of factors has caused this spike.

One, a large number of livestock has contracted the lumpy skin disease. Since being reported first in Odisha in September 2019, it has killed up to 155,366 cattle across the country. That leaves fewer cows to milk in affected areas.


A possible fodder shortage may also be causing the spike. Hot weather conditions have hit the wheat crop, leaving insufficient cattle feed.

Finally, recovery from the impact of covid-19 has been slow. Demand for milk had dried up during the pandemic lockdown in 2020. Prices of milk, cheese, butter, and skimmed milk powder had crashed. This forced dairy farmers to hold limited livestock or even exit the trade altogether.

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