India’s dairy sector continues to face climate-linked supply pressures, with Gokul Dairy announcing a price hike for buffalo milk in response to rising production costs and fodder scarcity. From 21 February, the cooperative has increased the retail price of full cream buffalo milk by ₹2 per litre, taking it from ₹74 to ₹76 per litre. Prices of cow milk and other variants remain unchanged for now, although the management has indicated that further revisions cannot be ruled out.
Fodder Scarcity Drives Cost Pressures
Speaking to The Times of India, Gokul Dairy Managing Director Yogesh Godbole attributed the hike to a severe shortage of green fodder across the state.
According to the cooperative, fodder availability has declined by nearly 10 per cent within a single month, significantly increasing feeding costs for milch animals. Climate variability, including an early monsoon in May 2025, disrupted the fodder cycle and reduced overall availability.
Supporting Farmers Despite Margin Stress
Godbole noted that Gokul Dairy has already raised procurement prices by ₹3 per litre for buffalo milk since September 2025, implemented in phased increments, and ₹2 per litre for cow milk to support farmers. However, the cooperative has so far refrained from passing on the full cost burden to consumers, particularly in the highly competitive cow milk segment.
“We have been absorbing losses for the past five months, but beyond a point, it becomes unsustainable,” he said, adding that the current adjustment was unavoidable given prevailing conditions.
Market Dynamics and Consumer Impact
The decision to limit the price hike to buffalo milk reflects both market sensitivity and consumption patterns. Buffalo milk, which commands a premium due to its higher fat content, offers cooperatives relatively greater pricing flexibility compared to cow milk, where competition remains intense. For consumers in Mumbai and other markets served by Gokul, the hike underscores the growing impact of climate stress and input inflation on everyday dairy products.
Wider Implications for the Dairy Sector
From an industry perspective, the move highlights the fragility of dairy economics under climate uncertainty. Rising fodder costs, coupled with pressure to maintain farmer incentives, are forcing cooperatives to recalibrate pricing strategies. As climate variability intensifies, similar adjustments may become more frequent across regional milk unions.
