Floods threaten dairy industry after devastating vegetable, pulse markets 

As the nation grapples with the surge in vegetable and pulse prices, there seems to be no immediate relief in sight. Industry experts and farmers have expressed concerns over the potential consequences which could lead to the complete closure of commercial dairy farms and dairy-based startups. 

Shortage in the supply of milk-based products is putting immense pressure on the dairy sector, raising serious doubts about its sustainability.

"There are two types of animal feed, one is dry fodder made from wheat and husk, and the other is green fodder made from millet, sorghum, and maize. Green fodder is beneficial for cows as it aids their digestive system and enhances milk production while reducing costs. However, due to heavy rainfall and flooding in the areas around the Yamuna River, the cultivation has been severely affected. Consequently, the price of dry fodder is likely to increase from Rs 1200 to Rs 2000 per quintal, leading to higher expenses for farmers and potentially raising milk prices in the market," Raj Yadav, Founder and CEO, Gramik told Republic.

"Dairy farmers are facing challenges as the government has recently raised milk prices by Rs 2 to Rs 2.5 per litre. In previous winters, there was a shortage of milk, and the dairy farmers were already struggling. Now, with the increased fodder costs, purchasing milk from farmers at Rs 75 per litre will leave them with minimal profits, adding to their difficulties," Dushyant Naagar from Kisaan Sangharsh Samiti said.

While some dairy farmers have the advantage of sourcing feed directly from their own fields, commercial dairy startups that rely on purchasing fodder from the market are facing significant setbacks. Many dairies, especially in Delhi NCR’s Faridabad, have already shut down due to the rise in fodder prices, leaving those who started large-scale dairy ventures for commercial purposes struggling to sustain their businesses. 

Dairy industry growth projection

On June 27, Union Animal Husbandry Minister, Parshottam Rupala, shared some promising projections for the dairy sector in 2023-24 during a press conference celebrating the Department of Animal Husbandry and Dairying's nine-year accomplishments.

According to Rupala, the dairy sector is anticipated to experience significant growth, surpassing a remarkable 6 per cent in the upcoming year. He highlighted that milk production has consistently expanded at an impressive compound annual growth rate (CAGR) of 6.1 per cent over the past eight years. Moreover, the Minister expressed confidence that this positive trajectory would continue, with an expected growth rate of over 6 per cent in the coming season.