Milk prices in India have risen lock step with global prices, with many in the industry believing that this will continue. A shortage of animal feed is the primary trigger for this seemingly unstoppable surge. The war between Russia and Ukraine has sparked a global shortage of grains such as wheat and maize, which are inputs for animal feed.

Dairy producers in India are facing the brunt of rising cattle feed cost along with rising raw material and labour costs. The production price of animal feed has gone up by 40 percent. In addition, cost of delivery has also gone up due to rising diesel prices. Global supply chain disruptions have also impacted dairy production. These factors have pushed many dairy producers like Amul, Mother Dairy to hike milk prices by Rs 2.

Withdrawal of COVID restrictions and the promise of a hot summer has producers bullish in expectation of a massive demand. So, how will India keep up with the demand that is yet to come and will the price increase continue? To discuss this, CNBC-TV18 spoke to RS Sodhi, Managing Director of Amul; and Prabu Guthi, Founder and CEO at Talégaon Farms.

Watch accompanying video for more

Also Read | Mother Dairy to expand value-added segment in West Bengal, eyes Rs 500 crore turnover from east in 5 years