Gokul Dairy Announces Price Increase for Buffalo Milk
In a significant move affecting consumers, Gokul Dairy has implemented a price hike for its full cream buffalo milk. Effective from today, February 21, the cost per litre has risen by Rs 2, moving from Rs 74 to Rs 76. This adjustment comes as the dairy grapples with mounting challenges in the agricultural sector.
Fodder Shortage and Climate Change Drive Decision
Yogesh Godbole, the managing director of Gokul Dairy, explained to TOI that the price increase was necessitated by an extreme shortage of green fodder for milch animals across the state. "We have witnessed almost a 10% drop in fodder availability in just one month," Godbole stated. He attributed this crisis largely to climate change, noting that an early monsoon in May 2025 disrupted the fodder season, leading to significant losses.
Godbole emphasized that the dairy has been absorbing financial losses for the past five months to protect consumers. "We did not intend to hike rates this month, but the fodder situation landed upon us. Otherwise, we were protecting the consumer so far," he said. However, he acknowledged that such measures are unsustainable beyond a certain limit, prompting the current price adjustment.
Procurement Price Increases and Market Competition
In response to the fodder crisis, Gokul Dairy has taken steps to support farmers by raising procurement prices. For buffalo milk, the procurement price has been increased by Rs 3 per litre, implemented in one-rupee increments since September 2025. Similarly, cow milk procurement prices have seen a Rs 2 per litre hike. Despite these adjustments, the sale price of cow milk remains unchanged at present.
Godbole highlighted the competitive landscape in the cow milk sector as a factor in this decision. "There is immense competition in the cow milk sector," he noted, adding that the dairy will determine its future course of action regarding cow milk prices later. This cautious approach reflects the dairy's strategy to balance farmer support with market dynamics.
Current Status and Future Outlook
As of now, cow milk and other variants from Gokul Dairy have not seen any price changes. However, Godbole did not rule out the possibility of subsequent hikes, depending on how the fodder situation evolves. The dairy's management is closely monitoring conditions to make informed decisions moving forward.
The price hike underscores broader issues in the dairy industry, including:
- Climate change impacts on agricultural productivity
- Supply chain challenges due to fodder shortages
- Economic pressures on both farmers and dairy companies
Consumers in Mumbai and surrounding areas are advised to stay updated on any further announcements from Gokul Dairy as the situation develops.
