Archive · 5 Jan 2026
Feed inflation biggest stress for dairy farmers
Dairy farmers in India are facing a big problem because the cost of animal feed is going up.
This is making it hard for them to make a profit because milk prices don't go up as quickly as feed prices.
When farmers can't afford good feed, the quality of their milk goes down, and they get paid less for it.
This is squeezing them from both sides.
The government trying to keep milk prices low by capping them is making things worse because it puts pressure on processors and farmers.
What farmers really need is better planning, support from the government during price spikes, and long-term solutions like improving fodder production and procurement systems.
There are also problems with adulteration in the milk supply, which is hurting consumer trust and making it harder for honest farmers and processors to compete.
The dairy industry in India is not as balanced as it seems, with some states producing more milk than they can use while others don't have enough.
This mismatch is causing problems for everyone involved.
To fix these issues, the industry needs to invest more in processing and value-added capacity, and improve logistics between states.
Sustainability is also becoming an important part of the business, with companies using less water and energy, and shifting to more recyclable packaging.
Feed inflation is the biggest stress for dairy farmers, with prices of corn, soybean meal, cottonseed cake, and fodder all increasing.
Small farmers are struggling to absorb the shock of rising feed costs, leading to lower milk quality and payouts.
Erratic weather and adulteration from unorganised players are also major risks for the dairy industry.
Government subsidies for consumers by capping milk prices distort the dairy value chain and weaken the supply chain.
Structural reforms, such as uniform quality-based pricing, improved procurement infrastructure, and increased processing capacity, are needed to protect farmers and improve the industry.
- Who
- Dairy farmers, especially small farmers with 4-6 animals
- What
- Feed inflation and its impact on dairy farmers
- When
- Over the past year
- Where
- India
- Why
- Prices of corn, soybean meal, cottonseed cake, and fodder have increased, making it difficult for farmers to maintain productivity and income stability
- Director
- Ravin Saluja
- Company
- Nova Dairy (Sterling Agro Products)
- Biggest Risk
- Feed inflation
- Second Risk
- Erratic weather
- Third Risk
- Adulteration from unorganised players
- Government Subsidies
- Distorts dairy value chain
- Structural Reforms Needed
- Uniform quality-based pricing, improved procurement infrastructure, increased processing capacity
- Sustainability Measures
- Water recycling, energy efficiency, effluent treatment, recyclable packaging