Kudige dairy reports lower offtake after November 1 revision, with some consumers reducing purchase frequency.
KODAGU: Daily sales of Nandini milk in Kodagu district have declined by approximately 5,000 litres following the retail price increase that came into effect on November 1, according to Nandish, manager of Kudige milk dairy.
Kudige dairy, which operates under the Hassan Milk Union, receives and processes approximately 52,000 litres of milk daily from Kodagu. Before the price revision, the entire quantity was supplied to the Hassan Milk Union. However, the quantity being supplied has since fallen to between 45,000 and 47,000 litres per day, leaving approximately 4,000–5,000 litres unsold at the dairy.
Price increase affects consumer purchasing patterns
Nandish said the decline in sales was substantial, although some fluctuation in demand and supply is expected following a price revision. He attributed the immediate reduction to changes in consumer purchasing behaviour and said the market would need time to stabilise.
According to him, a clearer picture of sales and supply trends is expected to emerge over the next month.
The retail price increase ranges from ₹6 to ₹12 per litre, depending on the variety of milk. Some consumers who previously purchased milk every day are now buying it once every two or three days, while others have reportedly stopped purchasing it.
Higher tea and coffee prices add to consumer impact
The price revision has also affected hotels and restaurants in Kodagu, where tea and coffee prices have increased.
At ordinary establishments, the price of a cup of tea or coffee has reportedly risen from ₹15 to ₹20, while larger hotels charge higher rates.
The changes indicate that the impact of higher milk prices is extending beyond household purchases to food-service businesses, where milk is an important input for beverages and other preparations.
Sales trends to be monitored over the coming month
The reported decline highlights the sensitivity of retail milk demand to price changes, particularly when consumers adjust purchase frequency or reduce consumption.
Also Read: Patel’s Cooperative Vision and the Women Who Built India’s Dairy Economy
For the Hassan Milk Union and its affiliated dairy network, the next month will be important in assessing whether demand stabilises at the revised prices or whether the lower offtake continues.
The key issue for the cooperative will be balancing milk procurement, retail affordability and the efficient utilisation of milk collected from producers.
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