India’s dairy sector is experiencing a slowdown in the sales of summer-centric products such as curd, buttermilk, and ice creams due to an unexpectedly cooler summer and increased rainfall. Mother Dairy, a major supplier in the Delhi-NCR region, has revised its projected growth for these products downward by 10%. The company attributes this decline to weather aberrations starting from the end of April and continuing into May.
Despite the current dip in sales, the above-normal rainfall—110% of the long-period average since March 1—could benefit the dairy industry in the long term by boosting green fodder supplies, which are crucial for animal feed and milk production.
Mother Dairy remains optimistic about the remainder of the year, anticipating a rebound in sales as weather conditions stabilize. The company had projected a revenue increase of approximately 13% for FY25, aiming to reach ₹17,000 crore, up from ₹15,000 crore in the previous fiscal year.
Industry Insight:
The current weather-induced slowdown underscores the vulnerability of dairy product sales to climatic variations. However, the anticipated improvement in fodder availability due to increased rainfall may enhance milk production capacity, offering a silver lining for the industry in the upcoming months.
Source : Dairynews7x7 May 26th 2025