Dairy Business in a Peril of Crisis
The dairy industry in India is in a peril of acute crisis. The problem this time has arisen out of production surplus and plummeting foreign demand. With the fall in domestic demand the milk farmers are getting less for milk, exports have lowered with global skimmed milk powder prices down while the price corrections resulted in surplus of domestic pile but unfortunately the retail consumers got no benefit of the reduction in prices. Increase in Production India’s 5-10 year compounded annual growth rate in milk production has been 5 percent while around 4.40 percent in last 20 years. This growth has been the highest compared to the average increase of 2 to 2.20 percent for major milk producing countries as per the Nirmal Bung Report in April 2018. Over the years India has emerged as one of the world's biggest producers of milk with the total production likely to touch a record 186 million tonnes in 2018-19 from 122 Million MT in 2010. In addition to the above milk o