Dairy Sector Worried as Feed Prices Soar

06-Jan-2026 04:29 PM

New Delhi. The dairy sector is facing a growing crisis as the prices of animal feed and all its inputs have surged, threatening to erode profit margins. The increase in feed prices is the biggest concern for dairy producers.

The prices of maize, soybean meal, cottonseed cake, and fodder have all risen. Small-scale dairy farmers are unable to withstand this price increase. Animal feed prices have also increased significantly.

According to a leading dairy industry analyst, milk prices are not keeping pace with the increase in feed prices, disrupting the economics of the dairy sector. If farmers reduce the use of high-quality feed, the fat and SNF (Solids-Not-Fat) content in the milk decreases,

resulting in lower prices for their produce. Thus, they suffer losses on both ends. Dairy farmers have been struggling to maintain their productivity levels for the past year. Those with 4-6 animals are facing even more serious problems.

Maize prices were very high in the early months of last year but softened somewhat in the last quarter. Now, with the increase in soybean prices, soybean meal prices have started to rise.

Similarly, cottonseed oil cake prices are also at a high level. Green fodder prices have also increased. In this situation, the government should intervene to protect the interests of the dairy industry.