Rating agency CRISIL believes that milk prices will continue to rise over the medium term on sustained demand-supply mismatch and increasing input costs.
With milk products exports forming around 5% of India's total milk production, and domestic demand for dairy products remaining strong, the demand-supply gap is expected to continue to widen over the medium term.
This, along with increasing input (fodder and transportation) costs, will push milk prices up over the next three to five years, the report said.
Gurpreet Chhatwal, director, CRISIL Ratings says,
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