Weak Monsoon May Push Up Milk Prices

A weak 2026 southwest monsoon is emerging as a potential inflation risk for India's dairy sector, with industry experts warning that lower rainfall could reduce fodder availability, raise feed costs and eventually push up milk prices.

According to The Economic Times, the dairy industry is already witnessing selective milk price increases, while concerns are mounting that deficient rainfall during the crucial July–August period could further tighten milk supplies. Higher feed and fodder costs are expected to pressure dairy farmers' production economics, potentially leading to lower milk output and increased procurement prices.

However, economists note that the overall inflation impact will depend on the progress of the monsoon in the coming weeks, with lower global crude oil prices expected to partly offset broader food inflation pressures. Recent weather forecasts indicate that June 2026 was India's fifth-driest June since 1901, with rainfall 39.8% below normal, while the India Meteorological Department (IMD) has projected below-average rainfall in July, heightening concerns for agriculture and allied sectors, including dairy.

The development underscores the close link between monsoon performance, fodder availability, milk production costs and consumer milk prices in one of the world's largest dairy markets.

Source: Dairynews7x7 01 July, 2026 Read full story here

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