Milk is ubiquitous in India — from the morning glassful that most middle-class school kids glug to its use in Hindu religious rituals. Now it could become a headache for Prime Minister Narendra Modi’s government as prices soar.
The average retail price of milk in India has increased by 12% from a year ago to 57.15 rupees ($0.6962) a liter. A mix of factors is at play — a jump in the cost of cereals has made cattle feed more expensive, coupled with lower dairy yields after cows were inadequately fed due to the pandemic rupturing demand.
In turn, milk — which has the second-largest weight in India’s food basket — pushes up overall inflation as well. India’s headline inflation for March fell below the central bank’s target of 6% as high interest rates cooled overall demand, according to data released Wednesday. But milk inflation trended higher than the overall figure, at 9.31%.