In a fresh revision effective February 21, Gokul Dairy has increased the retail price of full cream (buffalo) milk from ₹74 to ₹76 per litre in Mumbai.
Why the hike?
According to Managing Director Yogesh Godbole, the decision was driven by:
- Acute shortage of green fodder across Maharashtra
- Nearly 10% drop in fodder availability within a month
- Increased procurement prices to support farmers
- +₹3 per litre for buffalo milk (since Sept 2025, phased)
- +₹2 per litre for cow milk
He clarified that while procurement prices have gone up for both buffalo and cow milk, retail cow milk prices remain unchanged for now due to intense market competition. However, future revisions are not ruled out.
Bigger Issue: Climate & Cost Pressure
Godbole pointed to climate irregularities, including an early monsoon in May 2025, which disrupted the fodder cycle and reduced green fodder yield.
This is a classic dairy economics equation:
- ↓ Fodder availability
- ↑ Feed cost
- ↑ Procurement price
- Eventually → ↑ Consumer price
For five months, the federation absorbed losses. But as he bluntly stated, that strategy has limits.
Read More: Study Finds Dairy’s Effects on Gut Health Are Mixed – and More Nuanced Than You Think
What This Signals for the Dairy Sector
For someone like you, studying dairy economics and cooperative models, this is a textbook example of:
- Cost-push inflation in dairy
- Climate vulnerability of milk pricing
- The balancing act between farmer welfare and consumer affordability
- Competitive pressure in the cow milk segment
Expect similar adjustments from other cooperatives if fodder scarcity persists.
Milk pricing is never just about milk — it’s about monsoon timing, fodder cycles, procurement politics, and retail competition. Welcome to real-world dairy management.
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