Feed Inflation Now Top Stress for India’s Dairy Farmers

Dairy farmers across the country are facing intensifying economic stress as feed cost inflation emerges as the greatest pressure point for milk producers, with prices of all key inputs rising sharply, industry sources say. According to industry veteran Saluja of Nova Dairys, farmers with small herds (4–6 animals) are struggling to maintain profitability amid escalating feed, fodder, labour and associated production expenses — forcing many to reassess the viability of dairy operations.

Feed inflation has emerged as a dominant contributor to rising overall dairy production costs, consistent with wider global trends where feed remains one of the largest individual inputs in milk production economics. Feed prices typically account for a very large share of the cost structure, meaning any inflation in feed compounds a farm’s cost base and compresses margins, especially for small and marginal producers.

The situation is compounded by other input price pressures — including energy, fertiliser and labour costs — which have broadly climbed alongside feed. In India, rising cattle feed, green fodder purchases and compound feeds are frequently cited by farmers as core reasons why milk production costs outpace milk price realisation, heightening stress on household incomes derived from dairying.

While some cooperatives and private dairies have responded with procurement price increases and periodic product price adjustments, the net benefits are uneven. For example, major brands like Amul and Mother Dairy have raised retail milk prices by about ₹1–₹2 per litre in recent months to partially offset rising input costs, and cooperatives have marginally increased procurement prices — but many farmers still find cost inflation outpacing income gains.

The feed inflation challenge underscores the need for improved nutrition management, cost-efficient feed alternatives, supply chain innovation and policy support to ease input price pressures, especially for smallholder dairying households that form the backbone of India’s dairy production system.

Source : Dairynews7x7 Jan 9th 2026 Hindu BL