Milk prices unlikely to see a hike in 2026, says Indian Dairy Assn

Milk Price Outlook for 2026

Milk prices in India are unlikely to see a hike in 2026, Sudhir Kr Singh, President of the Indian Dairy Association (IDA), said on Monday, noting that prices are revised only when dairy players are compelled to do so, faced with rising input costs. “Milk prices are revised only when dairy players are compelled to do so, keeping in mind the input costs such as feed, logistics and other factors. As of now, I don’t think there will be any price hike in 2026,” Singh told ANI when asked about the outlook for the year.

However, he added that a price increase cannot be ruled out if companies choose to put additional money into farmers’ hands.

Singh noted that nearly 70 per cent of the cost of milk production depends on cattle feed, and the industry would aim to strike a balance between the interests of producers and consumers. “We will make a balance between the milk producer and the consumer,” he assured.

Government Protection and Trade Policy

Lauding the government’s approach towards the dairy sector, Singh thanked Prime Minister Narendra Modi for keeping dairy in the protected category and outside the ambit of trade agreements, including the India-US interim trade deal framework.

“India is already a milk-surplus country. If we bring in milk from abroad at a low price, it would become difficult for our farmers to sell their produce,” he said.

“We are not exporting a lot. We have a large domestic market, and we did not want any foreign products to affect our farmers’ products. The government has addressed this, and we thank the Prime Minister for protecting the dairy sector. It took a lot of time, but this decision is in the interest of both farmers and the dairy industry,” Singh added. India always had reservations about opening the entire Indian agricultural sector to foreign players, which is why the interim trade deal with the US apparently missed the initially set timeline – fall of 2025. The Indian side has secured protection for its sensitive sectors, particularly agriculture and dairy, in this US deal.

Addressing Regional Imbalance

Addressing concerns about regional imbalance in milk production, Singh acknowledged that while western and southern India account for a major share, the focus is now shifting to the eastern states. “The government’s focus is on the eastern part of the country. Brands like Sudha in Bihar and Medha in Jharkhand are examples of this change,” he said.

He noted that the National Dairy Development Board (NDDB) is actively working in states such as Bihar, Jharkhand, Assam, Manipur and Tripura, helping develop infrastructure and expand milk procurement and production.

“In Assam, where people never imagined milk could be produced at scale, lakhs of litres are being collected daily. The eastern region is emerging as the new player in the dairy industry,” Singh said.

India’s Dairy Sector: Growth and Milestones

To empower rural India through dairy entrepreneurship, the Indian Dairy Association (North Zone), in collaboration with the IDA Western Uttar Pradesh Chapter, is organising the 52nd Dairy Industry Conference (DIC) at the Yashobhoomi Convention Centre, New Delhi, from 12 to 14 February 2026. This event will highlight the vast business opportunities emerging across India’s rapidly growing dairy sector.

India currently contributes 25 per cent of global milk production, a share expected to grow to 45 per cent by 2047. India ranks first in global milk production.

Total milk production in the country is estimated at 247.87 million tonnes in 2024-25, up from 239.30 million tonnes in 2023-24, reflecting a 3.58 per cent year-on-year growth. Per capita milk availability has increased significantly–from 319 grams per day in 2014-15 to 485 grams per day in 2024-25–compared with the global average of approximately 322 grams per day (2023-24). (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)