Many items including vegetables, fruits, grains, clothes, soap, shampoo, powder have become expensive. Some items for everyday use now cost extra. Inflation in the country will now have an effect on milk prices. Dairy companies may soon raise rates. Prices of skimmed milk powder and animal food have gone up in recent days. Prices could rise in the first six months of the current financial year, according to ICICI Securities experts on Friday. "Under our coverage, all dairy companies can raise prices by 5 to 8 per cent. Rising milk prices are a matter of concern. All dairy companies will raise prices in the first six months of the financial year," he said.
According to experts, the demand for milk has increased rapidly in the last few years due to hotels and restaurants along with homes. That is why milk prices have gone up. Rising prices of animal food and declining milk production due to heat also affected prices, he said. As a result, wholesale milk prices continue to rise year on year. For example, wholesale milk prices rose 5.8% in June. In South India, milk prices have increased by 3.4% per annum.
Inflation is on the rise due to rising prices of daily necessities. Companies are also facing rising prices of raw materials. For example, prices of skimmed milk powder have risen steadily over the last 12 months, up 26.3% per annum and 3% per month in June.