India’s Food and Drug Administration has warned consumers to brace for an increase in milk prices, with milk prices soaring more than a third on the New Year’s Day and now hovering at a record level of 2,068.53 per cent.
The government said on Thursday that prices will rise to 1,631.56 rupees ($20.80) per kg on Jan. 1, a price that will rise further to 1.986 rupees per kg next month, or 1.4 million rupees a litre.
It said that the rise is likely to increase by another 2.8% next year.
India’s dairy producers have been warning for years that prices were not sustainable, with farmers warning they would need to raise prices by at least 1,000 rupees to make up for the shortfall in milk supplies.
India produces more than 85% of the world’s milk, and many countries including China and Brazil import more than 80% of their milk from India.
On Friday, the government raised its target for dairy exports from 10,000 tonnes a year to 12,000.