Join date: Feb 15, 2022


The Indian dairy market is expected to grow by 9-11 per cent in 2021-22, driven by a revival in economic activities, increasing per capita consumption of milk and milk products, changing dietary preferences due to rising urbanization. With the expected recovery in demand during the festive season, skimmed milk powder (SMP) prices are likely to improve and leading to the liquidation of stocks in FY22. Raw milk procurement prices, which were subdued in FY21 due to weak demand, have increased in the current fiscal supported by a recovery in demand. Nevertheless, the higher procurement costs are not compensated by an equivalent increase in selling prices, which coupled with elevated fuel costs will result in contraction of 150 bps margins for dairy players in FY22.

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