Dairy commodities market in India has started to show some improvements. Most of the large dairy plants are undergoing maintenance currently . These plants are expected to start their commercial production after Vishwakarma Puja on September 17th . The companies have increased milk powder prices by Rs 5/7 per kgs.

The prices of good quality milk is also moving up and has touched Rs 40 per liter. for 6.5% fat and 9% SNF The old ghee stocks are also depleting and newer stocks are not arriving. This has given some relief to the stockists and ghee prices have moved up by Rs 150/200 per tin of 15 Kgs.

Companies in north are expecting that the current milk shortage would lead to demand supply gap during upcoming festival time. These companies are rather holding their stocks than selling them at low prices. Also read 500 crores export subsidy for SMP could bring 270 million USD and 120 million smiles

At global level the dairy price index slumped down by 1.7% during GDT auction on August 18 . The average price index came down to o a level of USD 3003 per MT as against UsD 3045 per MT in last fortnight. Total volume traded also dropped from 32696 MT to 31331 MT since early this month. The prices of various dairy products during the recent auction are given below.

Anhydrous milk fat  : 3873 (-2.9%)
Butter                      : 3370(-2.0%) Cheddar Cheese    : 3442(-3.6%)
Lactose                    : 1303(-3.3%)
SMP                        : 2608(+1.1%)
WMP                        : 2936(-2.2%)

There has been slight increase in prices of skimmed milk powder in global market . This would improve opportunities for local players to export their excess stocks with minimal support from the government. The prices of Ghee, Butter and SMP in International markets are Rs 290, Rs 250 and Rs 195 per Kgs. Also read Global dairy prices are moving up now: Government may trigger Atma-nirbhar Dairying

Current selling price of these three products in local markets are Rs 290-320 for ghee, Rs 220-230 for butter and Rs 230-Rs 270 . However SMP and Butter may be available at lower levels also. It has been reported that large players are exporting milk powder and ghee to clear up their stocks.