Delayed supply and increased demand for milk has led members of the dairy industry to discuss a possible escalation in its procurement price for farmers in the days to come. The pent-up demand from hotels, restaurants and canteens on one hand, and an almost stagnant production on the other, has led to the supply-demand mismatch, which spokespersons of dairy say is expected to grow sharper in the foreseeable future.
The shortage in supply- at a time which is normally associated with increased milk production – is due to farmers cutting on feed and supplements to their animals during the pandemic. This was done mostly due to dairies slashing their procurement prices.